Which of the Following,if True,is the Best Example of a Natural

question 13

Multiple Choice

Which of the following,if true,is the best example of a natural monopoly?

• A)The oil distribution industry where one distribution network serves the whole market
• B)The pharmaceutical industry where patents form a barrier to entry
• C)The beverages industry where the cost of capital is high and variable costs are low
• D)The hospitality industry where variable costs are higher than fixed costs

---

Definitions:

Secondary Liability

Legal responsibility that arises from helping, enabling, or indirectly contributing to the infringement or wrongdoing by another.

Presentment

The act of formally presenting a financial document, such as a check or draft, for acceptance or payment.

Discharge

The release from a legal obligation, such as the fulfillment of a debt or contractual requirement.

Individual

A single human being distinct from a group, class, or family.