In Order for a Natural Monopoly to Develop, It

question 139

Multiple Choice

In order for a natural monopoly to develop, it

• A)is important that the firm be very large.
• B)is important that the firm prices its product below cost.
• C)is not the absolute size of the firm but its size relative to the total market demand that is important.
• D)must be in the presence of government intervention.

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Definitions:

Enforce

To compel observance of or compliance with a law, rule, or obligation.

Privileges

Special rights or advantages granted to individuals or groups, often based on status, position, or need.

Corporal Punishment

The use of physical force causing pain, but not injury, with the intention to discipline or correct behavior.

Disciplinary Method

Strategies or techniques used to teach and enforce rules and behaviors, aiming to guide and correct an individual's actions towards socially acceptable standards.