A Natural Monopoly Is a Market Where

question 6

Multiple Choice

A natural monopoly is a market where

• A) a single firm has control over a vital natural resource.
• B) many smaller firms can produce the entire market output at the same per-unit cost as could one large firm.
• C) a single large firm can produce the entire market output at a lower per-unit cost than a group of smaller firms.
• D) many smaller firms can produce the entire market output at a lower per-unit cost than could one large firm.

---

Definitions:

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Standing Position

A basic human posture where the body is upright and supported by the feet, commonly used for various activities and tasks.

Habituation

The process by which an individual becomes accustomed to a stimulus and reacts less strongly over time.

Perceptual Constancy

Perceiving objects as maintaining their identity although sensations from them change as their positions change.