A Natural Monopoly Exists When

question 195

Multiple Choice

A natural monopoly exists when

• A) control of a key input leads to a single-firm industry.
• B) increasing marginal returns and the ability to obtain quantity discounts from suppliers leads to a single-firm industry.
• C) economies of large-scale production are substantial, leading to a single-firm industry.
• D) the government restricts entry that leads to a single-firm industry.

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Definitions:

Infant Amnesia

The inability of adults to recall personal memories from the first few years of life, due to the undeveloped state of the infant brain.

Hippocampus

A part of the brain involved in learning and memory, located inside the temporal lobe.

Semantic Memories

Semantic memories are a part of our memory responsible for storing information about the world, such as facts and concepts, that is not drawn from personal experience.

Episodic Memories

Memories of specific events or episodes, including contextual details and emotions, that are personally experienced.