A Monopoly Is Most Likely to Emerge and Be Sustained

question 193

Multiple Choice

A monopoly is most likely to emerge and be sustained when

• A) output demand is relatively elastic.
• B) firms have U-shaped average-total-cost curves.
• C) fixed capital costs are small relative to total costs.
• D) economies of scale are large relative to market demand.

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Definitions:

Sternum

A long flat bone located in the center of the chest, which connects to the ribs via cartilage to form the front part of the rib cage.

Deep

Positioned far away from the surface of the body or from the point of reference.