A Natural Monopoly Exists When

question 152

Multiple Choice

A natural monopoly exists when

• A)unit costs are minimized by having one firm produce an industry's entire output.
• B)several formerly competing producers merge to become the only firm in an industry.
• C)short-run average total cost curves are tangent to long-run average total cost curves.
• D)minimum efficient scale is attained at a small level of output.

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Definitions:

Rate of Flow

The velocity at which a fluid (liquid or gas) moves through a channel, pipe, or porous medium.

Channel

A natural or artificial waterway through which water flows.

Hydrograph

A graph showing the rate of flow (discharge) versus time past a specific point in a river, or other channel or conduit carrying flow.

Summer Thunderstorm

A weather phenomenon characterized by heavy rainfall, lightning, thunder, and occasionally hail, frequently occurring in the summer.