A Natural Monopoly Exists When

question 195

Multiple Choice

A natural monopoly exists when

• A) control of a key input leads to a single-firm industry.
• B) increasing marginal returns and the ability to obtain quantity discounts from suppliers leads to a single-firm industry.
• C) economies of large-scale production are substantial, leading to a single-firm industry.
• D) the government restricts entry that leads to a single-firm industry.

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Definitions:

Joint Tenancy

A form of property ownership in which two or more parties own a property together, with rights of survivorship.

Community Property

A type of shared asset ownership usually among married couples, in which properties obtained while married are equally held by each partner.

Tenancy In Common

A form of co-ownership where each tenant holds an undivided interest in the property, with no right of survivorship.

Tenancy By The Entirety

A form of joint property ownership that is available only to married couples, where each owns the entire property and neither can dispose of it without the consent of the other.