An Infant Was Born with a Nevus Flammeus (I

question 21

Multiple Choice

An infant was born with a nevus flammeus (i.e., port wine stain) . The parents ask questions about the lesions. What information will be provided to the parents?

• A) Tattooing is the best option to remove large birthmarks such as these.
• B) This birthmark does not fade with aging, and laser can be used to fade the stain.
• C) This birthmark needs to be removed with surgery.
• D) This birthmark will generally fade as your child gets older.

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Definitions:

Natural Monopolies

Natural monopolies occur in industries where the costs of production are lowest when a single firm supplies all the output, such as utilities companies.

Welfare Loss

The decrease in economic efficiency that occurs when the optimal allocation of resources is not achieved, leading to a loss of total welfare.

Unregulated Monopoly

A market condition where a single company or entity exclusively controls a particular industry or service without any governmental restrictions or oversight.

Pure Competition

A market structure characterized by a large number of small firms producing an identical product in an industry (market area) that permits complete freedom of entry and exit. Also called price-taker markets.