A Natural Monopoly

question 25

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 in which economies of scale exist so that one firm can supply the market at the lowest possible cost.
• D) is an industry where two or more smaller firms can supply the market at a lower cost than one big firm could.

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Definitions:

Greater-Than-Majority Vote

A voting requirement in decision-making processes that necessitates more than 50% of the votes to pass a motion or make a decision.

Unanimous Vote

A voting result where all participants agree on the decision or option presented without any dissent.

Shareholder Proxies

Legal authorizations granted by shareholders for someone else, often a board member, to vote on their behalf at company meetings.

Articles Or Bylaws

Written rules and regulations governing the structure and operations of a corporation or organization.