Suppose That You Build a High-Speed, Magnetically Powered Transportation System

Multiple Choice

Suppose that you build a high-speed, magnetically powered transportation system from New York to Los Angeles, and you are the only firm providing this service. High fixed costs resulting from the enormous quantity of capital used in this system enable decreasing average cost for any conceivable level of demand. Your monopoly would result from:

A) control of a scarce resource or input.
B) technological superiority.
C) increasing returns to scale.
D) government-set barriers.