Natural Monopoly Exists When

question 66

Multiple Choice

Natural monopoly exists when:

• A) one firm can supply the entire quantity demanded at higher cost than two or more firms.
• B) one firm can supply the entire quantity demanded at lower cost than two or more firms.
• C) one firm can supply the entire quantity demanded at the same cost as two or more firms.
• D) the long-run average cost curve exhibits constant returns to scale.

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Definitions:

Cultural Norms

The shared expectations and rules that guide behavior of people within social groups, influencing values, practices, and social interactions.

In-store Advertisements

Marketing and promotional displays located within a retail environment, aimed at influencing customer purchase decisions on the spot.

Cultural Influences

Factors stemming from the culture in which an individual has been raised or operates, affecting their values, behaviors, and preferences.

Reference Groups

Social groups that individuals use as a standard for evaluating their own behavior, attitudes, and values.