A Natural Monopoly Forms When _____

question 159

Multiple Choice

A natural monopoly forms when _____

• A)small firms merge to form larger firms.
• B)one firm has control over the entire supply of a basic input required to produce the product.
• C)one firm's monopoly position is created and enforced by the government.
• D)one firm receives patent protection for certain basic production processes.
• E)the long-run average cost incurred by a firm declines as the firm expands output.

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Definitions:

Fish

Aquatic animals that are typically covered with scales and have gills for breathing in water.

Coconuts

The large, brown, hard-shelled seeds of the coconut palm, known for their edible white flesh and water, and used in various culinary and non-culinary applications.

Produces

The act of creating or manufacturing goods and services to meet consumer demand.

Clothing

Items worn on the body, typically made from fabrics or textiles, for practicality or fashion.