A natural monopoly is a monopoly that arises from:
A. having exclusive control over the natural resources used to produce a good.
B. having an exclusive right to operate in a national park.
C. a firm's natural desire to maximize its profit.
D. economies of scale.
Answer: D
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In the Keynesian model with a variable money wage and variable price level, an increase in the money supply lead to a rise in all of the following except
a. price level. b. output. c. real wage. d. level of employment. e. all of these rise
When U.S. computer companies hire workers in India to staff their customer service call centers, they are engaging in
A) predatory pricing. B) unfair trade practices. C) outsourcing. D) labor engagement.
The government is considering a mandatory savings program that forces people to save 8% of their income each year for retirement. What behavioral biases might be used as a justification for such a program? (Choose all that apply.) a. Limited cognitive ability, preventing people from being able to accurately estimate how much an investment early in one's career will grow. b. Limited willpower,
preventing people from being able to give up the pleasure of current consumption for the benefits of consumption later in retirement. c. Limited commitment power, leading the government to use the funds for current expenditures. d. Risk aversion, leading people to consume now rather than wait until the uncertain future.
The cross elasticity between two goods is 2.5 . These goods are
a. perfect complements b. imperfect complements c. unrelated d. substitutes e. inferior