Natural Monopolies Form When

question 39

Multiple Choice

Natural monopolies form when

• A)small firms merge to form larger firms
• B)one firm has control over the entire supply of a basic input required to produce the product
• C)one firm's monopoly position is created and enforced by the government
• D)one firm receives patent protection for certain basic production processes
• E)long-run average cost declines as a firm expands output

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Definitions:

Climatic Conditions

The overall weather patterns and environmental conditions of a specific region over time.

Microlith

Small blades of flint or similar stone which were hafted together in wooden handles to make tools; widespread in the Mesolithic.

Old World

Refers to the parts of the world known to Europeans before the discovery of the Americas, including Africa, Europe, and Asia.

Mesolithic

The Middle Stone Age, a period in human history between the Paleolithic and Neolithic, characterized by the development of small stone tools and the beginning of a sedentary lifestyle.