A Monopoly Can Be Temporary Because Of

question 111

Multiple Choice

A monopoly can be temporary because of:

• A)high barriers to entry.
• B)a lack of substitutes for the monopolist's product.
• C)economies of scale.
• D)technological change.

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Definitions:

Free-Rider Problem

A situation in which individuals consume more than their fair share of a public resource, or shoulder less than a fair share of the costs of its production, because they are not charged for their usage.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use does not reduce availability to others.

Government Provision

Public goods and services provided by the government for the benefit of its citizens.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from the production and consumption of a good or service.