A Natural Monopoly Usually Arises When

question 204

Multiple Choice

A natural monopoly usually arises when

• A) there are diseconomies of scale in an industry.
• B) the government allows unrestricted access to a market.
• C) there are large economies of scale relative to the industry's demand.
• D) companies band together to form a larger company.

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Definitions:

Law

A system of rules and guidelines which are enforced through social institutions to govern behavior.

Interactive System

A computer system designed for human interaction, allowing users to directly manipulate graphics, text, or other data on a screen.

Stakeholders

Individuals or groups that have an interest, stake, or investment in a business or project and can affect or be affected by its operations.

Shareholders

Individuals or entities that own shares in a corporation, thereby having an interest in its performance and potential entitlement to dividends.