A Natural Monopoly Exists When One Large Firm Can Produce

question 83

True/False

A natural monopoly exists when one large firm can produce a product at a lower per unit cost than can smaller firms.

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Definitions:

Exchange

The act of giving one thing and receiving another, especially of the same type or value, commonly used in the context of goods, services, or financial instruments.

Individuals

Refers to single human beings, distinct from a group, class, or family.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.