Natural Monopolies Form When

question 39

Multiple Choice

Natural monopolies form when

• A)small firms merge to form larger firms
• B)one firm has control over the entire supply of a basic input required to produce the product
• C)one firm's monopoly position is created and enforced by the government
• D)one firm receives patent protection for certain basic production processes
• E)long-run average cost declines as a firm expands output

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