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:

Trobriand Islanders

The indigenous people of the Trobriand Islands, part of Papua New Guinea, known for their unique matrilineal society and Kula ring exchange system.

Canoe Prow

The forward-most part of a canoe, often intricately decorated in indigenous cultures, and designed for both functional steering and ceremonial or symbolic purposes.

Ceremonial Men's House

A communal building used by various indigenous cultures, primarily in Melanesia and Australia, for rituals and meetings exclusively attended by male members of the community.

Iatmul

A people of Papua New Guinea known for their elaborate wood carvings and culturally significant rituals centered around the Sepik River.