A Natural Monopoly, Such as the Local Telephone Company, Is

question 137

Multiple Choice

A natural monopoly, such as the local telephone company, is characterized by

• A)a lack of natural competitors
• B)low fixed costs and diseconomies of scale
• C)economies of scale
• D)a lack of government regulation
• E)constant costs of production

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Definitions:

Fee Simple Interest

The most complete form of ownership in real estate, granting the owner full possessory rights and legal ownership, subject to governmental regulations.

Trade Fixture

Personal property attached to leased property by a tenant for business purposes, which can be removed at the lease's end.

Personal Property

Moveable assets or belongings, excluding real estate or land, owned by an individual or business.

Annexed

Attached or added, especially in terms of land or documents, to expand property or information.