Why Do Additional Firms Often NOT Try to Compete with a Natural

question 206

Multiple Choice

Why do additional firms often NOT try to compete with a natural monopoly

• 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)They see that the natural monopoly doesn't make a huge profit.

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Definitions:

Communication Medium

The channel or method used to convey messages from sender to receiver, which can include verbal, non-verbal, written, or digital forms.

Media Richness

Describes the ability of a communication medium to effectively convey information and convey meaning through immediate feedback, multiple cues, and personalization.

Ambiguity

Refers to the quality of being open to more than one interpretation; lack of definiteness or certainty.

Communication Medium

The channel or method through which information is transmitted from sender to receiver, such as text, speech, video, or digital platforms.