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:

Valid Contract

A legally binding agreement between parties that meets all the essential requirements of lawful consideration, offer and acceptance, competent parties, and legal purpose.

Scope of Work

A detailed description of the specific tasks, activities, deliverables, and timelines that a project or contract will encompass.

Legal Subject Matter

The specific area or topic within the field of law that is under discussion, analysis, or consideration.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the involved parties, to prevent fraud.