A Natural Monopoly Exists When

question 77

Multiple Choice

A natural monopoly exists when

• A)a monopolist produces a product, the main component of which is a natural resource.
• B)economies of scale are so large that only one firm can survive and achieve low unit costs.
• C)a firm is the exclusive owner of a key resource necessary to produce the firm's product.
• D)there are no close substitutes for a firm's product.

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Definitions:

Four-Drive Theory

A motivational theory proposing that human beings are driven by four fundamental needs or drives: the drive to acquire, bond, learn, and defend.

Social Norms

Social norms are the accepted behaviors, values, and conventions that govern the behavior of individuals within a group or society.

Past Experience

Previous events or knowledge gained through earlier involvement in similar or related activities, influencing one's current behavior and decisions.

Emotional Signals

Expressions or manifestations of one's feelings that communicate emotional states to others, often non-verbally.