A Natural Monopoly Is Most Likely to Occur in Which

question 272

Multiple Choice

A natural monopoly is most likely to occur in which of the following industries?

• A)The pharmaceutical industry because the development and approval of new drugs through the Food and Drug Administration can take more than 10 years
• B)The diamond mining and marketing industry because one firm can control a key resource
• C)The software industry because of the importance of network externalities
• D)An industry where fixed costs are very large relative to variable costs

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Definitions:

Mood and Affect

Terms referring to an individual's prevailing emotional state (mood) and the observable expression of emotion (affect).

Appearance and Behavior

The outward presentation of oneself combined with actions, both of which are often used to make judgments about character.

Problem Representation

The way in which a problem is conceptualized or framed, which can affect how it is understood and tackled.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks.