A Natural Monopoly Exists When

question 81

Multiple Choice

A natural monopoly exists when

• A) a firm produces a product essential to national security.
• B) a firm is able to operate at the minimum point of its long- run average total cost curve.
• C) one firm can most efficiently supply the entire market demand.
• D) a firm has a government charter to be the sole producer of some good.
• E) only one firm is supplying a natural resource.

---

Definitions:

Uniform Building Code

A comprehensive set of regulations for building construction aimed at ensuring safety and structural integrity, often adopted by municipalities and states.

Types of Leases

Refers to the various classifications of rental agreements based on duration, manner of rent calculation, and other conditions, such as fixed-term, periodic, or at-will leases.

Assignment

The transfer of rights, property, or obligations from one party to another, typically seen in contracts and agreements.

Sublease

A transfer of less than all of a tenant’s interest in a leased property.