A Natural Monopoly Exists When

question 32

Multiple Choice

A natural monopoly exists when

• A)economies of scale are negligible
• B)there are a few dominant firms that corner the market
• C)one firm can produce the market output at lower average cost than two or more firms can
• D)barriers to entry are low
• E)only a few firms can minimize cost and maximize profit

---

Definitions:

Stratified Sampling

A sampling method that divides the population into smaller groups, or strata, to ensure representation of significant subpopulations in the sample.

School Administrator

An official in an educational setting responsible for the management, coordination, and supervision of school operations and activities.

Freshmen

First-year students at a high school, college, or university.

Population Parameter

A characteristic or measure of an entire population, such as the mean or standard deviation, often estimated using sample data.