Which of the Following Is a Characteristic of a Natural

question 168

Multiple Choice

Which of the following is a characteristic of a natural monopoly?

• A) Marginal cost declines over large regions of output.
• B) Average total cost declines over large regions of output.
• C) The product sold is a natural resource such as diamonds or water.
• D) All of the above are correct.

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Definitions:

Posting

The process of recording financial transactions in the ledger of an accounting system, an essential step in the accounting cycle.

Transaction

A business event or exchange between two or more parties that has a financial impact on the accounts of the entities involved.

Trial Balance

A bookkeeping report that lists the balances of all ledger accounts at a specific point in time, used to verify the mathematical accuracy of the accounts.

Trial Balance

An accounting report that lists the balances of all ledgers accounts to check the mathematical accuracy of the bookkeeping entries.