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:

Inconsistent

A term describing systems of equations that have no solution, as their lines or planes do not intersect.

Solutions

The values or sets of values that satisfy the conditions of an equation or inequality.

Infinite Solutions

A condition in which an equation or system of equations has an unlimited number of solutions.

Consistent

Refers to something that is unchanged throughout in terms of behavior or pattern.