In the Case Where a Natural Monopoly Exists in an Industry

question 256

Multiple Choice

In the case where a natural monopoly exists in an industry,

• A) a competitive market structure will be costly and difficult to maintain.
• B) a competitive market structure will be more efficient and more equitable.
• C) government regulations will always improve efficiency in this industry.
• D) economies of scale will not be a consideration when analyzing the proper structure of the industry.

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Definitions:

Professional Robber

An individual who engages in theft or robbery as a primary occupation, often demonstrating skill, planning, and organization in executing crimes.

Too Much Risk

A situation where the level of danger or chance of failure is considered excessively high, potentially leading to undesired outcomes.

Shoplifters

Individuals who illegally take goods from a store without paying for them.

Designer Clothes

High-quality, often expensive, clothing made by or bearing the label of a well-known fashion designer.