Which of the Following Is an Example of a Natural

question 141

Multiple Choice

Which of the following is an example of a natural monopoly?

• A) the trademark protecting Gatorade
• B) the talents of Tom Hanks
• C) the local water company
• D) the patent on an Intel processor
• E) De Beers' ownership of a large fraction of the world's diamonds

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Definitions:

Sensitivity Analysis

The study of how the variation in the output of a model can be attributed to different variations in its inputs.

Scarce Resources

Limited resources available to meet the unlimited wants and needs of individuals or societies.

Parameter Changes

Adjustments made to the variables or inputs that define the operation of a system or model.

Maximum Profit

The highest possible financial gain achievable by a business or investment, often the primary goal of economic activities and operations.