A natural monopoly owes its existence to
A. control of a key input.
B. patents.
C. persistently declining long-run average costs as scale increases.
D. increasing marginal returns and the ability to obtain quantity discounts from suppliers.
Answer: C
You might also like to view...
Which of the following statements is true?
A) Marginal analysis is a key component in the process of optimization in levels. B) Only direct costs are considered when the net benefits of the alternatives are calculated. C) In both the techniques of optimization, all costs have to be converted to the same unit of measurement. D) Optimization in levels calculates the change in net benefits when a person switches from one alternative to another.
Which of the following cannot be an effective entry barrier?
A) a firm making very high economic profits B) a firm being granted a patent for its product C) a firm owning all of a vital resource needed to produce a good D) when huge economies of scale exist
An increase in the amount of currency held by the public will raise the value of the deposit expansion multiplier
a. True b. False Indicate whether the statement is true or false
Compared to First World countries, developing countries would have _____
a. a higher life expectancy b. higher productivity rates c. lower education levels d. lower birthrates e. a higher rate of private investment