Which of the Following Is a Characteristic of a Natural

question 369

Multiple Choice

Which of the following is a characteristic of a natural monopoly?

• A)Average cost exceeds marginal cost over large regions of output.
• B)Increasing the number of firms increases each firm's average total cost.
• C)One firm can supply output at a lower cost than two firms.
• D)All of the above are correct.

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Definitions:

Stock Dividends

A form of dividend paid by a company to its shareholders in the form of additional shares, rather than cash.

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Stock Dividends Distributable

A portion of a company's earnings allocated to shareholders in the form of additional shares, rather than cash, typically at a fixed rate.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.