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.

---

Definitions:

Implied Warranty

A legal assumption that a product will perform as expected according to the sale terms without being explicitly stated.

Agency Relationship

A fiduciary connection between two parties, where one (the agent) is authorized to act on behalf of the other (the principal) in dealings with third parties.

Occasion Photography

The professional service of capturing photos for specific events or occasions, such as weddings, birthdays, or corporate events.

Contract

A promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.