A Natural Monopoly

question 207

Multiple Choice

A natural monopoly

• A) sells to a single buyer.
• B) sets price equal to marginal revenue.
• C) is a firm than can supply the market at lower average total cost than two or more firms.
• D) produces a natural resource.
• E) faces a horizontal demand curve.

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Definitions:

Collection Float

The time period between when a check is deposited into a bank account and the funds become available.

Ledger Balance

represents the total balance in a general ledger account at the beginning of each day, including all transactions that have been posted.

Available Balance

The amount of funds in an account that is accessible for withdrawal or use, taking into account any holds or pending transactions.

Initial Cash Balance

The amount of cash a company has at the beginning of a financial period.