The Defining Characteristic of a Natural Monopoly Is

question 290

Multiple Choice

The defining characteristic of a natural monopoly is

• A)constant marginal cost over the relevant range of output.
• B)economies of scale over the relevant range of output.
• C)constant returns to scale over the relevant range of output.
• D)diseconomies of scale over the relevant range of output.

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Definitions:

Service Business

A type of business that provides intangible products, such as expertise, experience, or access, rather than physical goods.

Alternative

A term used to describe an option or choice among multiple possibilities, often referring to solutions, methods, or investments.

Limited Liability Company

A corporate form that merges the tax benefits of a sole proprietorship or partnership with the limited liability offered by a corporation.

Law Firm

A business entity formed by one or more lawyers to engage in the practice of law, offering legal services to clients.