A Local Electricity-Generating Company Has a Monopoly That Is Protected

question 182

Multiple Choice

A local electricity-generating company has a monopoly that is protected by an entry barrier that takes the form of

• A)control of a key raw material.
• B)network externalities.
• C)economies of scale.
• D)a perfectly inelastic demand curve.

---

Definitions:

False Uniqueness Effect

A cognitive bias wherein individuals underestimate the extent to which their abilities, behaviors, or beliefs are shared by others.

Sociometer Theory

A theory linking level of self-esteem with level of belongingness.

Belongingness

An emotional need or desire for strong and stable relationships with different groups or communities.

Self-Esteem

An individual's overall subjective emotional evaluation of their own worth or value.