Which Type of Barrier to Entry Allowed the Electric Company

question 229

Multiple Choice

Which type of barrier to entry allowed the electric company to maintain a monopoly over the production of electricity?

• A) a patent
• B) economies of scale
• C) diseconomies of scale
• D) ownership of a scarce factor of production

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Definitions:

Chi-square Statistic

A measure used in statistics to test the independence of two events.

Observed Data

Refers to the data that has been collected or measured directly in an experiment or study.

Calculated

Determined or derived by mathematical methods or processes.

Null Hypothesis

A default hypothesis that there is no effect or no difference, used as a basis for statistical testing.