A Natural Monopoly Is Characterized by

question 92

Multiple Choice

A natural monopoly is characterized by

• A)collusion with other competitors to divide up the market.
• B)a decreasing average-cost curve extending beyond the market's size.
• C)a firm protected from competition by a government regulation.
• D)a firm having control over the entire supply of a basic input in the production process.

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Definitions:

Technological Change

Innovations in technology leading to the creation of new products, improvement in production processes, or increased efficiency in services or operations.

Standard Of Living

The degree of wealth, comfort, material goods, and necessities available to a person or community.

Output Per Worker

measures the average production or services provided by each worker, often used as a productivity indicator.

Discriminates

The act of making distinctions or treating someone differently based on characteristics other than individual merit.