To Be a Natural Monopoly, a Firm Must

question 11

Multiple Choice

To be a natural monopoly, a firm must

• A)control a key resource input.
• B)have economies of scale that are so large that it can supply the entire market at a lower cost than two or more firms.
• C)have significant network externalities.
• D)be in a government-regulated market.

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Definitions:

Nonorganic failure to thrive

A condition observed in infants and young children who do not gain weight or grow as expected, without an underlying organic cause.

Adult's arms

Refers to the physical capacity and comfort that adults provide through holding or embracing, often conveying security and affection.

Adult height

The final height an individual achieves after completing the physiological growth phase, typically attained in late adolescence or early adulthood.

Years of age

A unit of measurement referring to the length of time a person or entity has existed, usually counted from birth in the case of individuals.