When Is It Possible for a Natural Monopoly to Evolve

question 47

Multiple Choice

When is it possible for a natural monopoly to evolve into a competitive market

• A)as a market expands
• B)as patent and copyright laws change
• C)as technological advances give rise to economies of scale
• D)as new resources are discovered

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Definitions:

Equipment

Tangible property other than land or buildings that is used in operations of a business, such as machinery or office furniture.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Statement Of Cash Flows

An accounting document illustrating the impact of adjustments in balance sheet figures and profits on cash and cash equivalents, separated into operating, investing, and financing sectors.

Indirect Method

A technique used in cash flow statements to adjust net income for changes in non-cash accounts to calculate cash flow from operating activities.