In Which of the Following Situations Would a Natural Monopoly

question 19

Multiple Choice

In which of the following situations would a natural monopoly exist?

• A)a firm has a government charter to be the sole producer of some good
• B)a firm is able to operate at the minimum point of its long-run average total cost curve
• C)a firm produces a product essential to national security
• D)only one firm is supplying a natural resource
• E)one firm can most efficiently supply the entire market demand

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Definitions:

Sensory Neuron

A neuron that transmits an impulse from a receptor to the central nervous system.

Blood Pressure

The force exerted by blood against the inner walls of the blood vessels.

Heartbeat

The pulsation of the heart, including one complete contraction and relaxation cycle, distributing blood throughout the body.

Medulla

The innermost part of an organ or structure, such as the medulla oblongata of the brain that controls autonomic functions, or the inner region of an adrenal gland.