Natural Monopolies Differ from Other Forms of Monopoly Because They

question 456

Multiple Choice

Natural monopolies differ from other forms of monopoly because they are

• A)not subject to barriers to entry.
• B)not regulated by government.
• C)unable to sustain long-run profits.
• D)are generally not worried about competition eroding their monopoly position in the market.

---

Definitions:

Lessees

Individuals or entities that obtain the right to use property, plant, and equipment through lease agreements.

Lessors

Individuals or entities that lease or rent an asset to a lessee, often owning the asset during the lease term.

Technological Changes

Developments and innovations in technology that can affect economic and social outcomes.

Guaranteed Residual Value

The minimum value guaranteed by a lessor to a lessee regarding the asset's value at the end of the lease term.