A Natural Monopoly Occurs When

question 131

Multiple Choice

A natural monopoly occurs when

• A)patents protect a firm from competition
• B)copyrights protect a firm from competition
• C)advertising costs exceed fixed costs
• D)marginal cost exceeds marginal revenue
• E)average costs decrease over the whole range of market output

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Definitions:

Adipose Tissue

Connective tissue in which fat is stored.

Sebaceous Glands

Glands in the skin that secrete sebum, an oily substance that lubricates the skin and hair.

Sweat Glands

Specialized skin glands in mammals that produce sweat, a fluid consisting primarily of water, salts, and urea, as a means of cooling the body through evaporation.

Elasticity

The ability of a material or tissue to resume its normal shape after being stretched or compressed.