Which of the Following Would Create a Natural Monopoly

question 162

Multiple Choice

Which of the following would create a natural monopoly?

• A) ownership of all the available units of a necessary input
• B) an exclusive right granted to supply a good or service
• C) requirement of a government license before the firm can sell the good or service
• D) technology enabling a single firm to produce at a lower average total cost than two or more firms
• E) a patent granted the producer of the good or service

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Definitions:

Laspeyres Index

A measure of the change in the cost of purchasing a specified set of goods and services over time, using the quantities bought in a base period as weights.

Bankruptcy Law

Legal statutes and regulations that govern the process by which individuals or enterprises can declare their inability to pay their debts and seek relief.

Debtor

A debtor is an individual or entity that owes money to another party, often a creditor, as a result of borrowing funds or failing to pay for goods or services.

Creditor

An entity or individual to whom money is owed by a debtor for goods sold, services rendered, or money loaned.