Which of the Following Is a Characteristic of a Natural

question 561

Multiple Choice

Which of the following is a characteristic of a natural monopoly?

• A)Fixed costs are typically a small portion of total costs.
• B)Average total cost declines over large regions of output.
• C)The product sold is a natural resource such as diamonds or water.
• D)All of the above are correct.

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Definitions:

Corn Market

The trading environment for corn, including its production, distribution, and sale.

Economic Losses

Occurs when a company's total costs exceed its total revenues, indicating a negative economic profit.

Market Price

The ongoing rate at which an asset or service is being traded for in a certain marketplace.

Normal Profits

The minimum level of profit needed for a company to remain competitive in the market, often considered as the break-even point.