From What You Know About the Different Kind of Monopolies

Multiple Choice

From what you know about the different kind of monopolies, which answer best describes the natural ones?

A) They only exist because the government has established patent laws.
B) They can produce services, but not goods.
C) The market supports only two or three firms.
D) Potential competitors are purchased before they can enter.
E) There is a declining ATC throughout the relevant range of production.