An Industry Is a Natural Monopoly When Which of the Following

question 206

Multiple Choice

An industry is a natural monopoly when which of the following is(are) true?
(i) a single firm will supply a good or service at a socially optimal quantity
(ii) a single firm can supply a fixed number of goods or services at a smaller cost than could two or more firms
(iii) a single firm can produce additional units at a smaller marginal cost

• A)(i) and (ii)
• B)(ii) only
• C)(ii) and (iii)
• D)(iii) only

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Definitions:

Revolutionary War

A war fought from 1775 to 1783, in which the Thirteen American colonies won independence from Great Britain, leading to the establishment of the United States of America.

Avoided

Avoided signifies purposely staying away from or preventing an occurrence of a specific act, situation, or engagement.

Indentured Servants

Workers who agreed to work for a specific period of time in exchange for transportation to the New World, food, accommodation, and a new life in the colonies, primarily during the 17th and 18th centuries.

Irish Immigrants

refers to people from Ireland who moved to another country, especially to the United States in the 19th and early 20th centuries, often escaping famine and seeking better economic opportunities.