For a Natural Monopoly to Exist

question 219

Multiple Choice

For a natural monopoly to exist,

• A)a firm must continually buy up its rivals.
• B)a firm's long-run average cost curve must exhibit diseconomies of scale beyond the economically efficient output level.
• C)a firm's long-run average cost curve must exhibit economies of scale throughout the relevant range of market demand.
• D)a firm must have a government-imposed barrier.

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Definitions:

Radium

Radium is a naturally occurring radioactive metallic element, used in cancer treatment and previously in luminescent paint for watches and instruments.

Electrons

Subatomic particles with a negative charge, found orbiting the nucleus of an atom.

Neutral Atoms

Atoms that have an equal number of protons and electrons, resulting in no overall charge.

Gain Or Loss

A financial term indicating the positive or negative difference between the value of something at two different times.