A Natural Monopoly,left to Itself

question 8

Multiple Choice

A natural monopoly,left to itself,

• A)will take over other industries
• B)will produce the quantity that minimizes long-run average total cost
• C)will produce the quantity that minimizes marginal cost
• D)will produce an inefficient level of output
• E)will charge an inefficiently low price

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Definitions:

Security Interest

A legal right granted by a debtor to a creditor over the debtor's property to secure the repayment of a debt or performance of some other obligation.

Real Property

Land and anything permanently affixed to it, such as buildings and trees.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Deed of Trust

A legal document used in some states that involves three parties—the borrower, the lender, and the trustee—and it serves as a lien on real property.