Natural Monopolies Differ from Other Forms of Monopoly Because They

question 456

Multiple Choice

Natural monopolies differ from other forms of monopoly because they are

• A)not subject to barriers to entry.
• B)not regulated by government.
• C)unable to sustain long-run profits.
• D)are generally not worried about competition eroding their monopoly position in the market.

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Definitions:

Subsidies

Financial aid provided by the government to support a specific economic activity or sector.

Supply Of Farm Products

The total quantity of agricultural goods that producers are willing and able to sell at various prices during a certain time period.

Demand

The total amount of goods and services that consumers are willing and able to purchase at various price levels, at a given moment in time.

Farm Incomes

The earnings obtained from agricultural activities, reflecting the financial health and productivity of farms.