A Natural Monopoly Exists Whenever a Single Firm

question 125

Multiple Choice

A natural monopoly exists whenever a single firm:

• A)is owned and operated by the government.
• B)is investor owned but has been granted the exclusive right by the government to operate in a market.
• C)has economies of scale over the entire range of production that is relevant to its market.
• D)has gained control over a strategic input of an important production process.

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Definitions:

Stakeholder Theory

A theory in corporate governance and business ethics that addresses the morals and values in managing an organization, emphasizing the importance of all stakeholders.

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public by practicing ethical and sustainable ways in operations and decision-making.

Rights Theory

A framework focusing on the entitlements individuals have, based on moral or legal principles, which should not be infringed upon by others.

Costs And Benefits

An analysis or assessment comparing the negatives and positives of a decision, project, or proposal.