A Local Electricity-Generating Company Has a Monopoly That Is Protected

question 182

Multiple Choice

A local electricity-generating company has a monopoly that is protected by an entry barrier that takes the form of

• A)control of a key raw material.
• B)network externalities.
• C)economies of scale.
• D)a perfectly inelastic demand curve.

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Definitions:

Small Business Administration

The Small Business Administration is a U.S. government agency established to support the growth and development of small businesses through loans, loan guarantees, counseling, and other assistance programs.

Government Lender

A governmental entity or agency that provides loans or financial assistance to individuals, businesses, or other organizations.

Government Lending Programs

Financial programs sponsored by governmental entities to provide loans to individuals or businesses for various purposes.

Small Businesses

Companies with a small number of employees and relatively low volume of sales, often privately owned.