A Natural Monopoly Exists When, Throughout the Range of Market

question 31

Multiple Choice

A natural monopoly exists when, throughout the range of market demand,

• A)average cost is increasing
• B)there are diseconomies of scale
• C)there are economies of scale
• D)average cost is constant
• E)marginal cost exceeds average cost

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Definitions:

Standardized

The process of making something conform to a standard, often through testing, to ensure uniformity and comparability.

Oral Stage

The first stage in Freudian psychosexual development, occurring in the first year of life, where the mouth is the primary source of gratification and exploration.

Fixated

An obsessive or intense focus on an object, activity, concept, or person, potentially leading to dysfunctional behavior.

Adult

A person or organism that has reached full growth or maturity.