In Which of the Following Situations Would a Natural Monopoly

question 39

Multiple Choice

In which of the following situations would a natural monopoly exist?

• A)only one firm is supplying a natural resource
• B)a firm has a government charter to be the sole producer of some good
• C)a firm is able to operate at the minimum point of its long- run average total cost curve
• D)a firm produces a product essential to national security
• E)one firm can most efficiently supply the entire market demand

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Corporation

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—recognized as a separate entity from its owners, with its own rights and liabilities.

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