A Natural Monopoly

question 258

Multiple Choice

A natural monopoly

• A) is not protected by any barrier to entry.
• B) exists because of legal barriers to entry.
• C) is an industry in which economies of scale exist at the level of output where the market demand curve intersects the long-run average cost curve.
• D) is an industry where two or more smaller firms can supply the market at a lower cost than one big firm could.

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Definitions:

Hot-Stove Rule

A management principle suggesting that discipline should be immediate, clear, consistent, and impartial, similar to touching a hot stove.

Discipline Principle

A concept in management that emphasizes the importance of enforcing rules and maintaining order within an organization.

Alternative Hypotheses

Hypotheses that suggest there is a statistically significant difference between groups or variables, as opposed to the null hypothesis.

Null Hypothesis

A default hypothesis that assumes no significant difference or effect between groups or variables in a statistical test.