For a Natural Monopoly to Exist

question 219

Multiple Choice

For a natural monopoly to exist,

• A)a firm must continually buy up its rivals.
• B)a firm's long-run average cost curve must exhibit diseconomies of scale beyond the economically efficient output level.
• C)a firm's long-run average cost curve must exhibit economies of scale throughout the relevant range of market demand.
• D)a firm must have a government-imposed barrier.

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Definitions:

David Buick

An American inventor and businessman who founded the Buick Motor Company.

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An American multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts.

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An American automobile brand that was produced by General Motors and was one of the oldest car brands in the world before it was discontinued.

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A luxury vehicle brand from the United States, known for its high-quality cars and status as a symbol of success.