A Natural Monopoly

question 167

Multiple Choice

A natural monopoly

• A) exists when many sellers experience lower average total costs than potential
• Competitors do.
• B) exists when a firm has sole ownership of a natural resource.
• C) is an example of a government-created barrier.
• D) is needed to make a profit in the long run.
• E) exists when a single seller experiences lower average total costs than any potential competitor.

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Definitions:

Student t Distribution

A probability distribution used in significance testing, especially useful with small sample sizes or unknown population variances.

Symmetrical

A shape or object that is exactly the same on both sides of a dividing line or around a center point.

Degrees of Freedom

Refers to the number of independent values or quantities that can vary in an analysis without violating any constraints.

Number

A mathematical object used to count, measure, and label.