A Natural Monopoly

question 207

Multiple Choice

A natural monopoly

• A) sells to a single buyer.
• B) sets price equal to marginal revenue.
• C) is a firm than can supply the market at lower average total cost than two or more firms.
• D) produces a natural resource.
• E) faces a horizontal demand curve.

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Definitions:

Subgoal Activation

The process by which smaller objectives are targeted in order to achieve larger, overarching goals.

Functional Fixedness

The cognitive bias that limits a person to using an object only in the way it is traditionally used.

Stepwise Incrimination

A gradual increase in criminal behavior or severity of crimes committed, often observed in serial offenders.

Hill Climbing

A problem-solving strategy that involves continuous moves towards increasing improvement or higher value.