Which of the Following Is an Example of a Natural

question 139

Multiple Choice

Which of the following is an example of a natural monopoly?

• A)A local electricity supplier.
• B)A dry cleaner in New York City.
• C)An aircraft manufacturer.
• D)A pharmaceutical company that holds a patent on a new drug.

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.

Cash-generating Unit

The smallest identifiable group of assets that generates cash inflows largely independent of the cash inflows from other assets or groups of assets.

Average Tax Rate

The proportion of total income that an individual or corporation pays in taxes.

Income

The amount of money received by an individual or business in exchange for labor, services, or investments, typically measured over a specific period of time.