A Natural Monopoly Exists When

question 162

Multiple Choice

A natural monopoly exists when:

• A)a few firms collude to make one large firm.
• B)economies of scale provide large cost advantages to having one firm produce the industry's output.
• C)firms naturally maximize profit regardless of market structure.
• D)firms enter the industry as a result of profit incentives.

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Definitions:

Cytosol

The fluid component inside a cell, separate from organelles or structures enclosed by membranes, where various cellular processes occur.

Cisternae

Flattened membrane disks or sacs making up the Golgi apparatus, involved in modifying, sorting, and packaging proteins.

Chromatin

Complex of DNA and proteins that forms chromosomes within the nucleus of eukaryotic cells.

Nucleoli

Structures within the nucleus of a cell, involved in ribosomal RNA synthesis and ribosome assembly.