A Natural Monopoly Is Most Likely to Occur in Which

question 42

Multiple Choice

A natural monopoly is most likely to occur in which of the following industries?

• A)the pharmaceutical industry because the development and approval of new drugs through the Food and Drug Administration can take more than 10 years
• B)the diamond mining and marketing industry because one firm can control a key resource
• C)the software industry because of the importance of network externalities
• D)an industry where fixed costs are very large relative to variable costs

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Definitions:

Ambient Temperature

The air temperature of any object or environment where equipment is stored or operated.

Body Temperature

The measure of the body's ability to generate and get rid of heat; essential for the proper functioning of enzymes and metabolic processes.

Motives

The reasons or desires that drive an individual to act in a certain way.

Propel Behaviour

The motivation or drive behind actions that move an individual towards certain goals or outcomes.