A natural monopoly arises when:
A. economies of scale are so great that only one firm can exist in a market.
B. a firm acquires a patent.
C. two firms merge to become the only firm serving an entire market.
D. a single firm controls all of a natural resource.
Answer: A
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The wheat growing industry consists of very many farmers producing identical products. The market structure that best fits the wheat growing industry is probably
A) perfect competition. B) monopolistic competition. C) monopoly. D) oligopoly.
In a simultaneous move game, ________
A) each player has to make his choice after knowing his rival's choice B) each player has to make his choice without knowing his rival's choice C) there is always more than one Nash equilibrium D) there is always more than one dominant strategy equilibrium
Refer to Figure 15-17. The dean of the college argues: "I think the course should be priced to maximize the profit the college earns, so these funds can be used to pay some other expenses." Which price should the dean favor?
A) $0 B) $40 C) $88 D) $150
An economic ________ refers to either an upturn or a downturn in the economy.
A. stagnation B. model C. fluctuation D. chain index