A Natural Monopoly Is Most Likely to Occur in Which

question 42

Multiple Choice

A natural monopoly is most likely to occur in which of the following industries?

• A)the pharmaceutical industry because the development and approval of new drugs through the Food and Drug Administration can take more than 10 years
• B)the diamond mining and marketing industry because one firm can control a key resource
• C)the software industry because of the importance of network externalities
• D)an industry where fixed costs are very large relative to variable costs

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Definitions:

Americanization Programs

Initiatives aimed at assimilating immigrants into American culture, often focusing on teaching the English language and American customs, values, and history.

Immigrant Women

Female individuals who have moved from their country of origin to another country to live, often facing distinct social and economic challenges.

Prohibition

A period in the United States from 1920 to 1933 during which the manufacture, transport, and sale of alcoholic beverages were banned nationwide by the 18th Amendment to the Constitution.

Urban Reformers

Describes individuals or groups advocating for improvements in city conditions, including housing, education, and sanitation, during the progressive era to enhance urban life.