A Natural Monopoly Is Defined as

question 93

Multiple Choice

A natural monopoly is defined as

• A) a market in which competition and entry are restricted by the granting of a government license.
• B) an industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost.
• C) a market in which competition and entry are restricted by the granting of a patent.
• D) any market where one firm constitutes the entire industry.

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Definitions:

Public Education

A universally accessible system funded and administered by government agencies aiming to provide free education to all children.

Property Taxes

Levies on property ownership, typically based on the property's value, used to fund local services such as schools, roads, and public safety.

Progressive Tax System

A taxation system where the tax rate increases as the taxable income increases, considered more equitable by distributing the tax burden according to ability to pay.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, reflecting the percentage of tax paid on the last dollar earned.