A Natural Monopoly Occurs When a Monopoly

question 58

Multiple Choice

A natural monopoly occurs when a monopoly:

• A) exists because significant economies of scale are present.
• B) exists because the monopolist can produce a good at a lower cost than anyone else.
• C) is created by the federal government.
• D) achieves a naturally efficient allocation of resources.

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Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Guidelines

A set of recommendations or principles provided to direct actions or decisions in specific situations or practices.

Clinical Psychologists

Professionals specialized in diagnosing and treating mental, emotional, and behavioral disorders through psychological techniques and assessments.

Psychiatrists

Medical doctors specializing in the diagnosis, treatment, and prevention of mental illnesses and disorders.