A Natural Monopoly Exists When a Firm

question 68

Multiple Choice

A natural monopoly exists when a firm

• A) owns all of the world's known reserves of a natural resource.
• B) has an average cost curve that is decreasing at the point where it crosses demand.
• C) has obtained a patent on a new genetically modified organism.
• D) is able to practice price discrimination in the sale of a natural resource.

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Definitions:

Neo-absolutism

Neo-absolutism, also known as neo-absolutist, refers to the 19th-century political trend in certain European monarchies to reinforce absolute monarchy powers amidst modernizing reforms.

Liberals and Nationalists

Advocates for liberal policies favoring freedom, democracy, and equality, and nationalists who emphasize strong national identity and sovereignty, often working together in 19th-century European movements for independence and reform.

Multi-ethnic

Describes a society or group that contains members from diverse ethnic backgrounds.

Austrian Empire

A centralized absolute monarchy in Central Europe from 1804 to 1867, which became the Austro-Hungarian Empire after the Compromise of 1867.