A natural monopoly arises when
A) one firm controls the supply of a unique resource.
B) a firm has many small firms that it can control.
C) there are firms which act together as a monopoly.
D) the long-run average cost curve slopes downward as it crosses the demand curve.
E) one firm naturally convinces the government to limit competition in the market.
D
You might also like to view...
Which feature of the business cycle does the one-period model replicate with shocks to government expenditures?
A) procyclical employment B) procyclical consumption C) procyclical real wages D) countercyclical prices
If a nation experiences severe drought and real risk-free interest rate rises, then:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Aggregate demand and aggregate supply fall. d. Neither aggregate demand nor aggregate supply change. e. None of the above.