A Natural Monopoly

question 216

Multiple Choice

A natural monopoly

• A) has one lowest-cost producer in the industry.
• B) exists only when it is regulated.
• C) has long-run average costs equal to zero.
• D) always experiences diseconomies of scale.

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in consumers' income, indicating its necessity or luxury status.

Education Demanded

The quantity and type of education that individuals or society seek, often influenced by the job market and societal values.

Cross-price Elasticity

Measures the responsiveness of the demand for one good to a change in the price of another good.

Good Y

Typically, a variable used in economic models to represent a generic good or service in the market.