What Is the Primary Reason a Natural Monopoly Is Allowed

question 305

Multiple Choice

What is the primary reason a natural monopoly is allowed to exist?

• A) A natural monopoly is more cost-conscious in its decision making.
• B) A natural monopoly can produce at a lower cost due to economies of scale.
• C) Governments always prefer natural monopolies over competitive industries.
• D) It can only be publicly owned and therefore is profitable to the government.

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Definitions:

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Early stage of human embryonic development that consists of a hollow, fluid-filled ball of cells.

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