Which of the Following Is the Best Example of a Natural

question 65

Multiple Choice

Which of the following is the best example of a natural monopoly?​

• A)A company involved in gold mining in the Colorado Rocky Mountains​
• B)A company involved in filmmaking in Hollywood
• C)A company providing electrical service to homes in Seattle
• D)Kodak producing film
• E)IBM producing computers

---

Definitions:

Value

The worth of an asset or service, determined by factors such as market demand, utility, and costs of production.

Black-Scholes

A mathematical model used to price European style options, estimating the variation over time of financial instruments.

European Options

Derivative securities that can only be exercised at the expiration date, not before, contrasting with American options which can be exercised at any point before expiration.

Pricing Model

A theoretical construct that uses mathematical formulas to estimate the appropriate price of a security or asset.