Which of These Is NOT an Example of a Natural

question 291

Multiple Choice

Which of these is NOT an example of a natural monopoly?

• A) the chemical industry
• B) the local newspaper
• C) the railroad industry
• D) electric utilities

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Definitions:

Network Externalities

The effect that additional users of a good or service have on the value of that product to others, where increased usage can enhance value.

Externality

An economic term referring to a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved.

New Edition

The latest version or release of a book, publication, or any media content, often updated with new information or corrections.

Buy Back

A transaction where a company purchases its own shares from the marketplace, which can reduce the amount of outstanding stocks and often increase the value of remaining shares.