A Natural Monopoly Exists When

question 107

Multiple Choice

A natural monopoly exists when

• A) one firm can supply an entire market at a lower average total cost than can two or more firms.
• B) a firm can engage in price discrimination.
• C) a monopoly firm faces a horizontal demand curve.
• D) diseconomies of scale exist in an industry.
• E) the producers in an industry have formed a cartel.

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Definitions:

Conflict Theory

A concept that sees social and economic structures as instruments in the conflict among groups or classes, utilized to uphold inequality and the supremacy of the dominant class.

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