A Natural Monopoly Occurs When a Single Firm Can Produce

question 189

True/False

A natural monopoly occurs when a single firm can produce the entire output of the market at a lower average cost than could many firms.

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Definitions:

Voluntary Agreement

A mutual consent or contract between parties, typically concerning legal obligations and enforcements.

Offer

A proposal presented by one party to another with the intention to enter into a legally binding contract upon acceptance.

Acceptance

The actual or implied receipt and retention of that which is tendered or offered.

Understanding

The internal process of interpreting and comprehending information, concepts, or situations.