A Monopoly Is Most Likely to Emerge and Be Sustained

question 176

Multiple Choice

A monopoly is most likely to emerge and be sustained when

• A)output demand is relatively elastic.
• B)firms have U-shaped average-total-cost curves.
• C)fixed capital costs are small relative to total costs.
• D)economies of scale are large relative to market demand.

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Definitions:

Food Item

An individual substance that is consumed as nourishment or part of a meal.

Butter

A dairy product made from churning milk or cream, separating the solid fats from the liquid buttermilk, and used as a spread or in cooking.

Abundance

The large quantity or amount of something present in a particular area or within a system.

Liver

A vital organ in the body performing multiple functions, including filtering toxins from the blood, metabolizing drugs, and secreting bile.