What Is a Major Characteristic of a Natural Monopoly

question 176

Multiple Choice

What is a major characteristic of a natural monopoly?

• A) The firm is a single seller of a resource.
• B) It sets price equal to marginal revenue.
• C) There is extensive product advertising.
• D) There is a large range for economies of scale.

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Definitions:

Pricing

The process of determining the value at which a product or service will be sold to consumers.

Marketing Mix

Refers to the set of actions, or tactics, a company uses to promote its brand or product in the market, traditionally encompassed by the four Ps: Product, Price, Place, and Promotion.

Commoditized Markets

Markets where the products available from different suppliers are so similar that they are interchangeable and competition is primarily based on price.

Buying Allowance

A promotional or pricing strategy where buyers are given a specific discount or allowance on bulk purchases.