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:

Clear

To settle or resolve a transaction, debt, or other financial activity, ensuring that all obligations have been fulfilled.

Liabilities

Financial obligations or debts owed by an individual, business, or organization to others.

Highly Liquid Assets

Assets that can be easily and quickly converted into cash without significant loss in value, such as cash itself or treasury bills.

Large Withdrawals

Substantial amounts of money taken out from a bank account or investment, which can significantly impact the financial stability of the institution holding the funds.