A Natural Monopoly Arises When

question 238

Multiple Choice

A natural monopoly arises when

• A)there are constant returns to scale over the relevant range of output.
• B)there are economies of scale over the relevant range of output.
• C)one firm owns a key natural resource.
• D)the government gives a single firm the exclusive right to produce a particular good or service.

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Definitions:

Roughage

Fibrous parts of food, typically indigestible, that help in the movement and processing of waste through the digestive system.

Fiber

A dietary component found in fruits, vegetables, and whole grains, important for digestive health and preventing diseases.

Casual Contact

Interactions that occur in a social setting that are informal and not planned.

Saturated Fats

Fats containing a high proportion of fatty acid molecules without double bonds, considered less healthy in large amounts.