Which of the Following Industries Does Not Fit the Natural

question 110

Multiple Choice

Which of the following industries does not fit the natural monopoly model?

• A)Electricity
• B)Cable TV
• C)Fast food restaurants
• D)Natural gas

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Definitions:

Outlay

The total amount of money spent on a particular purchase or project.

IRR

Internal Rate of Return; a metric used in financial analysis to estimate the profitability of potential investments.

Cost of Capital

The rate of return that a company must pay on its investment and financing activities to maintain its current market value.

Cash Inflows

Money received by a business or organization through its activities, such as sales revenue, investment income, or financing.