When Does a Natural Monopoly Occur

question 230

Multiple Choice

When does a natural monopoly occur

• A)when the product is sold in its natural state (such as water or diamonds)
• B)when there are economies of scale over the relevant range of output
• C)when the firm is characterized by a rising marginal-cost curve
• D)when production requires the use of free natural resources, such as water or air

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Definitions:

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial markets, business strategy, and research.

SWOT Analysis

A strategic planning tool used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats.

Opportunities

Circumstances or situations that present potential for growth, improvement, or benefit, often requiring timely action to capitalize on them.

Grand Strategy

A comprehensive, long-term plan of essential actions by which an organization seeks to achieve its major objectives.