An Industry in Which Total Costs Are Kept to a Minimum

question 159

Multiple Choice

An industry in which total costs are kept to a minimum because only one firm serves the whole market is called a:

• A) natural monopoly.
• B) competitive monopoly.
• C) patent monopoly.
• D) limit monopoly.

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Definitions:

Business Market

The Business Market comprises organizations that acquire goods or services used in the production of other services or goods that are sold, rented, or supplied to others.

NAICS

The North American Industry Classification System, a standard used by Federal statistical agencies for classifying business establishments.

Economic Activity

Any action that involves the production, distribution, and consumption of goods and services within an economy.

Market Share

The percentage of an industry's sales that a particular company controls, indicating the company's size, competitiveness, and influence in the market.