Which of the Following Would Create a Natural Monopoly

question 22

Multiple Choice

Which of the following would create a natural monopoly?

• A) An exclusive right granted to supply a good or service.
• B) A patent granted the producer of the good or service.
• C) Technology enabling a single firm to produce at a lower average total cost than two or more firms.
• D) The requirement to obtain a government licence before a firm can sell the good or service.
• E) Ownership of all the available units of a necessary input.

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Definitions:

Colostomy

Incision of the colon for the purpose of making a more or less permanent opening.

Artificial Opening

A surgically created opening in the body for the discharge of bodily fluids or waste, often referred to as a stoma.

Rugae

The folds or ridges found on the internal surface of an organ, such as the stomach, which allow for expansion.

Inner Lining

The layer of material or tissue on the inner side of an organ, structure, or clothing.