Additional Firms Often Do Not Try to Compete with a Natural

question 32

Multiple Choice

Additional firms often do not try to compete with a natural monopoly because

• A)they fear retaliation in the form of pricing wars from the natural monopolist.
• B)they are unsure of the size of the market in general.
• C)they know they cannot achieve the same low costs that the monopolist enjoys.
• D)the natural monopoly doesn't make a huge profit.

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Definitions:

Midwest

A geographical region of the United States generally including states in the central, northern part of the country.

Alternative Hypothesis

A hypothesis that proposes a specific relationship between variables, suggesting that there is an effect or a difference that is in contrast to the null hypothesis.

One-way ANOVA

A statistical technique that compares the means of three or more independent (unrelated) groups to determine if at least two of them differ significantly.

Republicans

A member of the Republican Party, one of the two major political parties in the United States.