Which Statement Is False

question 224

Multiple Choice

Which statement is false?

• A)Natural monopolies can provide cheaper service as monopolies than could several competing firms.
• B)The two main justifications for monopoly are economies of scale and natural monopoly.
• C)Economies of scale and high capital requirements are significant barriers to entry.
• D)None of these statements are false.

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Definitions:

Laspeyres Price Index

A price index that measures the change in the price level of a basket of goods and services, using the quantities of the base period as weights.

Base Year

A specific year against which economic growth or other variables are measured and compared.

Current Year

The present calendar year in which a transaction or event occurs or is being discussed.

Laspeyres Price Index

An economic measure that calculates the change in the price of a basket of goods and services, using the quantities purchased in the base year as weights.