A Natural Monopoly Arises When

question 238

Multiple Choice

A natural monopoly arises when

• A)there are constant returns to scale over the relevant range of output.
• B)there are economies of scale over the relevant range of output.
• C)one firm owns a key natural resource.
• D)the government gives a single firm the exclusive right to produce a particular good or service.

---

Definitions:

Enculturation

The process by which individuals learn the dynamics of their surrounding culture and acquire values and norms appropriate or necessary in that culture.

Socialization Process

The method through which individuals learn the values, norms, and required behaviors which permit them to participate as members of an organization.

U.S. Naval Academy

A federal service academy in Annapolis, Maryland, that educates and trains officers for commissioning primarily into the United States Navy and Marine Corps.

Salute Upperclassmen

A gesture or form of respect shown towards individuals with seniority or higher rank, especially in educational and military contexts.