Which of the Following Is an Example of a Local

question 253

Multiple Choice

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

• A) One of the two gas stations in town
• B) The only movie theater in town
• C) The U.S.Postal Service
• D) The three grocery stores in the state
• E) The two malls in town

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Definitions:

Lockbox System

A system used by companies to expedite the collection of check payments by having them processed through a bank's PO Box.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at their face value to create a return to the investors.

Collection Time

The average period it takes for a business to receive payments owed by its customers after a sale has been made.

Lockbox System

A service provided by banks to companies for receiving payments from customers; payments are sent to a post office box and then quickly processed by the bank.