An Unnatural Monopoly Occurs When the Scale Economies in Production

question 68

True/False

An unnatural monopoly occurs when the scale economies in production are so large that only a single firm can earn profit.

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Definitions:

Borrowed Funds

Money obtained from external sources, such as banks or financial institutions, to be repaid over time with interest.

Transfer Payments

Payments made by the government to individuals or groups without expecting a good or service in return, often aimed at redistributing income, such as social security benefits and subsidies.

Government Purchases

Expenditures by government agencies on goods and services that directly satisfy public consumption or investment in public infrastructure.

Transfer Payments

Payments made by governments to individuals without any expectation of services or goods in return, often in the form of welfare or subsidies.