A Natural Monopoly Arises When

question 29

Multiple Choice

A natural monopoly arises when

• A) one firm controls the supply of a unique resource.
• B) a firm has many small firms that it can control.
• C) there are firms which act together as a monopoly.
• D) the long-run average cost curve slopes downward as it crosses the demand curve.
• E) one firm naturally convinces the government to limit competition in the market.

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Definitions:

Colonial Politics

Refers to the political systems, structures, and dynamics within colonies, often involving the control and governance by an external power.

Transatlantic Slave Trade

The forced transportation of Africans to the Americas to work as slaves from the 16th to the 19th century, a key component of the global slave trade system.

Britons

Refers to the people from Great Britain.