What Is Meant by the Term Natural Monopoly

question 93

Multiple Choice

What is meant by the term natural monopoly?

• A)A single producer in a market,usually supported by government subsidies,who is able to produce at a higher cost than competing firms could.
• B)A single producer in a market,usually with patent rights,who is able to produce at a cost equal to those of the competing firms.
• C)A single producer in a market,usually with large economies of scale,who is able to produce at a lower cost than competing firms could.
• D)A single producer in a market,usually with monopoly rights over input resources,who is able to produce at a higher cost than competing firms could.

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Definitions:

Allowance Account

An accounting practice used to create a buffer for potential future losses on receivables, also known as a provision for doubtful debts.

Gross Realizable Value

The estimated selling price of goods minus any costs associated with the completion and sale of those goods.

Promissory Note

A financial instrument where the writer promises to pay a specific sum to a specified person or bearer at a determined date.

Accounts Receivable-Rey Company

This term is not standard; however, "Accounts Receivable" typically refers to the money owed to a company by its customers for goods or services delivered but not yet paid for.