A Firm That Is a Natural Monopoly

question 288

Multiple Choice

A firm that is a natural monopoly

• A)is not likely to be concerned about new entrants eroding its monopoly power.
• B)is taking advantage of economies of scale.
• C)would experience a higher average total cost if more firms entered the market.
• D)All of the above are correct.

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Definitions:

Anaerobic Respiration

Anaerobic respiration is a process by which cells produce energy without the need for oxygen, through fermentation or other means.

Aerobic Respiration

The process of producing cellular energy involving oxygen.

ATP

Adenosine triphosphate, a molecule that provides energy to drive many processes in living cells, acting as a universal energy currency.

Tropomyosin

A regulatory protein in muscle cells that blocks the binding site for myosin on actin molecules, preventing muscle contraction in the absence of calcium.