A Natural Monopoly

question 86

Multiple Choice

A natural monopoly

• A) exists when many sellers experience lower average total costs than potential competitors do.
• B) exists when a firm has sole ownership of a natural resource.
• C) is an example of a government-created barrier.
• D) is needed to make a profit in the long run.
• E) exists when a single seller experiences lower average total costs than any potential competitor.