A Natural Monopoly Is Defined as

question 69

Multiple Choice

A natural monopoly is defined as

• A) an industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost.
• B) a market in which competition and entry are restricted by the granting of a government licence.
• C) a market in which competition and entry are restricted by the granting of a patent.
• D) any market where one firm constitutes the entire industry.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, considering all interest payments and the repayment of principal.

Par Value

The face value or nominal value of a bond, share of stock, or other financial instrument, usually representing its value upon issuance.

Total Rate Of Return

The overall amount of profit or loss generated by an investment over a given period, including both capital gains and income, expressed as a percentage of the initial investment.

Zero-Coupon Bond

A debt security that does not pay periodic interest and is sold at a discount from its face value, with its return coming at the bond's maturity.