Additional Firms Often Do Not Try to Compete with a Natural

question 601

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 does not make a large profit.

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Definitions:

Broadening of Freedom

The expansion of individual rights and liberties to more people, exemplified by social, political, and legal advancements over time.

New England

A region in the northeastern United States comprising six states: Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, and Connecticut, known for its colonial past and as the birthplace of American democracy.

Slave Plantations

Large estates where enslaved African Americans were forced to work, primarily in the southern United States before the Civil War, mainly on cotton, tobacco, and sugar farms.

Barbados

An island country in the Lesser Antilles of the West Indies, known for its beaches, history, and cultural heritage.