Additional Firms Often Do Not Try to Compete with a Natural

question 385

Multiple Choice

Additional firms often do not try to compete with a natural monopoly because

• A) they fear retaliation in the form of pricing wars from the natural monopolist.
• B) they are unsure of the size of the market in general.
• C) they know they cannot achieve the same low costs that the natural monopolist enjoys.
• D) the natural monopoly doesn't make a huge profit.

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A high-energy molecule found in the cells of all living things, serving as a primary energy carrier.

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