**Quiz: Understanding Natural Monopolies****Question 1:**Which of the following markets is susceptible to being a natural monopoly? (Select all that apply.)- [ ] a. Electricity transmission- [ ] b. Vaccine production- [ ] c. Music production- [ ] d. Sewage management- [ ] e. Airport- [ ] f. Computer production*Note: Moving to another question will save this response.*---**Explanation:** A *natural monopoly* occurs when a single firm can supply a product or service at a lower cost than any potential competitor, typically due to high fixed costs and the nature of the industry. Participants are encouraged to consider which industries usually require extensive infrastructure that is costly to duplicate.

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Which of the following markets is susceptible to being a natural monopoly? (Select all that apply?) O a. Electricity transmission Ob. Vaccine production O. Music production Od. Sewage management e. Airport Of. Computer production

Which of the following markets is susceptible to being a natural monopoly? (Select all that apply?) O a. Electricity transmission Ob. Vaccine production O. Music production Od. Sewage management e. Airport Of. Computer production

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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