If an Industry's Demand Conditions Allow at Most One Firm

question 38

Multiple Choice

If an industry's demand conditions allow at most one firm to cover its costs while producing at its minimum efficient scale (MES) ,this situation is known as

• A)a discriminating monopoly.
• B)a natural monopoly.
• C)declining marginal revenue.
• D)limited competition.
• E)natural economic limits.

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower defaults.

Proceeds

The total amount of money or assets that result from a particular transaction or event.

Consideration

Something of value that is given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Chattel Paper

A document or electronic record that evidences both a monetary obligation and a security interest in specific goods or a lease of specific goods.