Which of the Following Statements Is (Are) TRUE

question 101

Multiple Choice

Which of the following statements is (are) TRUE?
I. A natural monopoly owes its existence to economies of scale.
II. In contrast to a monopoly industry, industries served by natural monopolies have no barriers to entry.
III. Natural monopolies have cost structures characterized by small fixed costs and steeply rising marginal costs.

• A) I and II
• B) I
• C) III
• D) II and III

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Definitions:

Rural City

A small city or town located in a countryside area, often characterized by lesser population density and more agricultural activities.

Urban City

A densely populated area characterized by significant infrastructural development and a high concentration of buildings and services.

Corporate City

A city characterized by significant influence or control by corporations, often with implications for urban development and governance.

Postmodern City

An urban development concept characterized by diversity, fragmentation, and the blending of cultural, temporal, and economic elements in an unpredictable manner.