A Natural Monopoly

question 146

Multiple Choice

A natural monopoly

• A) is not protected by any barrier to entry.
• B) exists because of legal barriers to entry.
• C) is an industry where two or more smaller firms can supply the market at a lower cost than one big firm could.
• D) is an industry in which economies of scale exist at the level of output where the market demand curve intersects the long- run average cost curve.

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Definitions:

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A term often used to refer to the Cenozoic Era, characterized by the rise and dominance of mammals after the extinction of dinosaurs.

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