Which of the Following Correctly Describes a Natural Monopoly

question 9

Multiple Choice

Which of the following correctly describes a natural monopoly?

• A)A natural monopoly is an industry in which products are differentiated from one another.
• B)A natural monopoly exists if one large firm's long-run average cost curve is upward-sloping.
• C)A natural monopoly is defined as a firm that operates in an industry that has significant regulatory barriers to entry.
• D)A natural monopoly is an industry that exhibits economies of scale.

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Definitions:

Positives

Positives refer to the favorable aspects or outcomes associated with a situation, decision, or action.

Negatives

Aspects, characteristics, or factors that are considered undesirable, harmful, or detrimental.

Expectancy Model

A theory that describes the motivational force behind an individual's actions as a function of their expectations about outcomes and the values they place on those outcomes.

Cultures

Shared beliefs, values, norms, and practices that characterize a group of people or an organization, shaping behavior and perceptions.