A Natural Monopoly Exists When

question 186

Multiple Choice

A natural monopoly exists when

• A) a single firm has control over a natural resource, such as timber.
• B) ATC in an industry will be at a minimum if output is produced by a single firm.
• C) a firm has an exclusive patent or license to produce a product granted by the government.
• D) entering the industry is barred by governmental authorities.

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Definitions:

Benign

Describes conditions, tumors, or growths that are not cancerous and are unlikely to spread to other parts of the body.

Progresses

The act of moving forward or advancing towards a goal, improvement, or a higher stage.

Dopamine-Producing Neurons

Nerve cells in the brain that release dopamine, a neurotransmitter essential for movement, motivation, and pleasure.

Serotonin-Producing Neurons

Nerve cells that manufacture and release serotonin — a neurotransmitter important for mood regulation and other functions.