Which of the Following Is the Best Example of a Natural

question 205

Multiple Choice

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

• A) cable television providers
• B) new home builders
• C) airline providers
• D) grocery stores

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Definitions:

Invention

The conception of a new product or process combined with the first proof that it will work.

Diffusion

The spread of an innovation through its widespread imitation.

Technological Advance

(1) An improvement in the quality of existing products, the invention of entirely new products, or the creation of new or better ways of producing or distributing products. (2) Any improvement in the methods by which resources are combined such that the same quantity of inputs can be made to yield a combination of outputs that is preferred to any combination of outputs that was previously possible.

Distributing

The process of making goods or services available to consumers, often through various channels.