To Be a Natural Monopoly a Firm Must

question 63

Multiple Choice

To be a natural monopoly a firm must

• A) control a key resource input.
• B) have economies of scale that are so large that it can supply the entire market at a lower cost than two or more firms.
• C) have significant network externalities.
• D) be very large relative to the total market.

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Definitions:

Civil Rights Act of 1964

Landmark U.S. legislation that outlawed discrimination based on race, color, religion, sex, or national origin.

Discrimination

Unjust or prejudicial treatment of individuals, especially on the grounds of race, age, sex, or disability.

White Primary

A practice that arose in the American South whereby only white citizens were allowed to vote in primary elections, effectively disenfranchising African Americans.

African Americans

A racial or ethnic group in the United States with ancestry from the black racial groups of Africa.