Monopolies That Exist Because Economies of Scale Create a Barrier

question 44

True/False

Monopolies that exist because economies of scale create a barrier to entry are called natural monopolies.

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Definitions:

Government Bond

A debt security issued by a government to support government spending and obligations, offering a fixed rate of interest over a period of time.

Reserves

Funds or commodities set aside for future use or held as a buffer against unforeseen shortages or financial emergencies.

Discount Rate

The interest rate charged by central banks on loans to commercial banks, influencing monetary policy and liquidity.

Money Supply

The cumulative sum of money, including cash, coins, and the funds deposited in checking and savings accounts, accessible in an economy at a definite point in time.