An Example of a Natural Monopoly Would Be

question 85

Multiple Choice

An example of a natural monopoly would be

• A)a congested public freeway.
• B)an airline flight that has been overbooked.
• C)local cable television service.
• D)public parking.

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Definitions:

Units Sold

The total number of units of product sold within a specific time frame.

Conversion Costs

Costs that are incurred to convert raw materials into finished goods, which typically include labor and manufacturing overhead expenses.

Relevant Costs

Costs that should be considered when making business decisions because they will be affected by the decision.