A Natural Monopoly Exists When Economies of Scale Are So

question 112

True/False

A natural monopoly exists when economies of scale are so large that only a single firm can survive.

---

Definitions:

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Stockholders' Equity

Represents the amount of financing provided by the owners of the company and the retained earnings generated by the company's operations.

Paid-in Capital

The total amount of capital that a company has received from shareholders in exchange for shares of stock.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.