A Natural Monopoly Is Most Likely to Occur in Which

question 102

Multiple Choice

A natural monopoly is most likely to occur in which of the following industries?

• A) The pharmaceutical industry because the development and approval of new drugs through the Therapeutic Goods Administration can take more than 10 years.
• B) The diamond mining and marketing industry because one firm can control a key resource.
• C) The software industry because of the importance of network externalities.
• D) An industry where fixed costs are very large relative to variable costs.

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Definitions:

Cooperative Document

A written agreement used in collaborative arrangements to outline the responsibilities and expectations of all parties involved.

Labor-Management Relationship

The dynamics between employees (and their representatives) and employers, focusing on negotiation, cooperation, and conflict resolution.

Union Commitment

The dedication and loyalty members demonstrate towards their union, often reflecting in active participation and support for union activities and goals.

Bargaining Rights

Rights that allow employees and their representatives to negotiate terms and conditions of employment with the employer.