For a Firm to Be a Natural Monopoly,it Should Have

question 10

Multiple Choice

For a firm to be a natural monopoly,it should have

• A)a special patent.
• B)exclusive access to a copyright.
• C)a cost curve that was continuously downward sloping to the right.
• D)a monopoly on a natural resource.
• E)a product so unique that no other firm could come close to producing it.

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Definitions:

Profitability

Profitability is a financial metric indicating the degree to which a company or business activity yields profit, comparing revenue against expenses over a specific period.

Tier 2 Environmental Costs

The indirect costs associated with environmental impacts and resource use that are not directly tied to a company's operations, such as societal or external environmental costs.

Depreciation

A method of allocating the cost of a tangible asset over its useful life, reflecting the loss of value over time due to factors like age, wear and tear, or obsolescence.

Environmental Costs

Expenses associated with the negative effects of business practices on the environment, including cleanup costs, fines, and costs for environmentally friendly operations.