A Natural Monopoly Refers To

question 26

Multiple Choice

A natural monopoly refers to:

• A)Any monopoly based on natural resources.
• B)Any monopolized market.
• C)A monopolized market where the barriers to entry are not structural.
• D)A market for which the total cost incurred by a single firm producing that output is less than the combined total cost of two or more firms producing the same total output between them.

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Definitions:

Government

The organization or system of organizations exercising authority and performing functions in a society or part of it.

Socially Optimal

A condition where resources are allocated in a way that maximizes the overall welfare or well-being of society.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good supplied over a given period.

Surplus

The amount of a product or service exceeding the demand for it, typically resulting in lower prices.