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:

Private Property Rights

Legal entitlements that grant individuals or entities exclusive use, control, and disposal of properties and assets.

Wealth Creating

The process of generating financial gain through investment, business ventures, or other methods that increase an individual's or entity's assets.

Capitalism

An economic system characterized by private ownership of the means of production and the creation of goods or services for profit.

Self-Interest

The motivation of individuals to pursue their own advantages and well-being.