A Natural Monopoly Is Most Likely to Occur in Which

question 42

Multiple Choice

A natural monopoly is most likely to occur in which of the following industries?

• A)the pharmaceutical industry because the development and approval of new drugs through the Food and Drug Administration can take more than 10 years
• B)the diamond mining and marketing industry because one firm can control a key resource
• C)the software industry because of the importance of network externalities
• D)an industry where fixed costs are very large relative to variable costs

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Definitions:

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another target neuron, muscle cell, or gland cell.

Acetylcholine

A neurotransmitter involved in many functions including muscle stimulation, heart rate, memory, and learning.

Dopamine

A neurotransmitter involved in many functions, including motivation, reward, attention, and regulating movement.