An Industry in Which Total Costs Are Kept to a Minimum

question 159

Multiple Choice

An industry in which total costs are kept to a minimum because only one firm serves the whole market is called a:

• A) natural monopoly.
• B) competitive monopoly.
• C) patent monopoly.
• D) limit monopoly.

---

Definitions:

Whitewater Rafting

An outdoor activity which involves navigating rivers or waterways with varying degrees of rough water using an inflatable raft.

Consumer Surplus

The distinction between the total sum consumers are ready and financially equipped to pay for a product or service, and the sum they actually end up paying.

Consumer Surplus

The variegation between the preferred payment amount by consumers for a good or service and their final payment amount.

Producer Surplus

The discrepancy between the price at which producers are prepared to sell a product and the actual price they obtain.