Which of These Is a Characteristic of a Natural Monopoly

question 59

Multiple Choice

Which of these is a characteristic of a natural monopoly?

• A) large economies of scale
• B) low barriers to entry
• C) high marginal cost
• D) lots of competition

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Definitions:

Game Theory

A branch of mathematics and economics that studies strategic interactions among rational decision-makers.

Solitaire

A card game played by one person or a metaphor for any activity done alone without the need for other participants.

Oligopoly Behavior

Strategic actions by firms in a market where a few dominant firms interact, leading to solutions and outcomes that depend on the choices of the other market participants.

Prisoner's Dilemma

The Prisoner's Dilemma is a standard example of a game analyzed in game theory that shows why two completely rational individuals might not cooperate, even if it appears that it is in their best interest to do so.