A Monopolist Is a Natural Monopolist If a Potential Entrant

question 14

Multiple Choice

A monopolist is a natural monopolist if a potential entrant faces:

• A)an inelastic residual demand schedule.
• B)AC above the residual demand curve.
• C)a higher AC curve than the monopolist.
• D)decreasing returns to scale over a significant range of output.

---

Definitions:

Differentiation

The process of distinguishing or becoming distinct, often used in development, biology, and psychology to denote specialization.

Behavioral Traits

Characteristics of an individual's actions and behaviors that are often consistent over time, such as habits, temperament, and reaction patterns.

Individualism

A social and political philosophy that emphasizes the moral worth of the individual and the importance of personal independence and freedom.

Collectivism

A cultural value or social outlook that emphasizes the good of the community, group, or society over the individual.