What Is a Major Characteristic of a Natural Monopoly

question 176

Multiple Choice

What is a major characteristic of a natural monopoly?

• A) The firm is a single seller of a resource.
• B) It sets price equal to marginal revenue.
• C) There is extensive product advertising.
• D) There is a large range for economies of scale.

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Definitions:

Advantages

Advantages are beneficial aspects or competitive edges that a business or entity has over others in its field or market.

Disadvantages

The unfavorable conditions or attributes that lead to a decrease in effectiveness, efficiency, or benefit.

Trust Receipt

A notice provided by the bank to a buyer who has taken out a short-term loan to purchase goods, with the bank holding the title to those goods until the loan is repaid.