ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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any situation in which only a single seller is allowed to exist.
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a monopoly in which the goods produced are agricultural resources.
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an industry that runs best when one firm produces all the output.
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an industry in which the government provides all the output.
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Detailed explanation-1: -A company with a natural monopoly might be the only provider or product or service in an industry or geographic location. Natural monopolies are allowed when a single company can supply a product or service at a lower cost than any potential competitor but are often heavily regulated to protect consumers.
Detailed explanation-2: -A monopoly is defined as a single seller or producer that excludes competition from providing the same product. A monopoly can dictate price changes and creates barriers for competitors to enter the marketplace.
Detailed explanation-3: -In a monopoly, there is only one seller in the market. The market could be a geographical area, such as a city or a regional area, and does not necessarily have to be an entire country. The single seller is able to control prices. Most monopolies fall into one of two categories: natural and legal.
Detailed explanation-4: -Natural monopolies exist in a host of different sectors. Consider these three examples for a start: 1. Public utilities: Governments and natural monopolies often work hand in hand to ensure everyone has access to natural gas, electric power, telecommunications potential, and the like.
Detailed explanation-5: -Which of the following is not true about a natural monopoly? It is taking advantage of diseconomies of scale. A natural monopoly is a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms.