A Natural Monopoly

question 160

Multiple Choice

A natural monopoly

• A)has an average cost curve that reaches minimum possible average cost at a low level of output.
• B)has a marginal cost curve that is steeply upward sloping.
• C)is usually subject to antitrust suits.
• D)is usually allowed to choose its price so as to maximize profits in the United States.
• E)occurs when a single firm can supply the entire market demand for a product at a lower average cost than would be possible if two or more firms supplied the market.

---

Definitions:

Neuron

A neuron is a nerve cell that is the basic building block of the nervous system, responsible for transmitting information through electrical and chemical signals.

Electrical Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field; comes in positive and negative forms.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons.

Axon

A long, slender projection of a nerve cell that typically conducts electrical impulses away from the neuron's cell body.