When an Industry Is a Natural Monopoly

question 280

Multiple Choice

When an industry is a natural monopoly,

• A)it is characterized by constant returns to scale.
• B)it is characterized by diseconomies of scale.
• C)a larger number of firms may lead to a lower average cost.
• D)a larger number of firms will lead to a higher average cost.

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Definitions:

Oversight Responsibility

The duty to oversee and ensure proper management and adherence to laws, regulations, and standards within an organization or system.

Money Management

The process of budgeting, saving, investing, spending, or otherwise overseeing an individual or group's capital usage.

Unethical Behavior

Actions that go against moral principles and professional standards, potentially causing harm or conflict.

Power

The ability or capacity to do something or act in a particular way, often referring to the control over individuals or resources in political and social systems.