Which of the Following Would Create a Natural Monopoly

question 162

Multiple Choice

Which of the following would create a natural monopoly?

• A) ownership of all the available units of a necessary input
• B) an exclusive right granted to supply a good or service
• C) requirement of a government license before the firm can sell the good or service
• D) technology enabling a single firm to produce at a lower average total cost than two or more firms
• E) a patent granted the producer of the good or service

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Definitions:

Fasci/o

A prefix in medical terminology referring to fascia, the connective tissue surrounding muscles, organs, and other structures.

Clavicle

A lengthy bone acting as a support between the scapula and the sternum, also referred to as the collarbone.

Dactyl/o

A prefix relating to the digits of the hands or feet (fingers or toes).

Hydro-

A prefix indicating a relation to water.