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:

Controllable Factors

Elements of the marketing mix (product, price, place, promotion) that a company can directly manage and adjust.

Marketing Mix

A set of controllable tools that a firm uses to produce a response in its target market, typically involving the four Ps: Product, Price, Place, and Promotion.

Civil War Records

Documents and archives that contain information regarding the American Civil War, including battles, personnel, and other historical data.

Sexual Fantasies

Imaginative thoughts or daydreams about sexual activities or desires.