A Natural Monopoly Exists When

question 11

Multiple Choice

A natural monopoly exists when

• A) only natural resources are used for production.
• B) only man-made resources are used for production.
• C) economies of scale are so great that the largest firm in the industry has the lowest costs and is able to drive out competitors.
• D) a part of an industry in the private sector is not regulated by the government.

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Definitions:

Basic Price Per Meal

The standard cost before any discounts or additional fees, for a single meal offering.

Discounted

The reduction applied to the original price of a product or service.

Graphical Method

A technique using graphs to solve equations or systems of equations, or to analyze mathematical relationships visually.

Pair Of Equations

Two equations set together, typically in algebra, that share two or more unknowns and are solved simultaneously.