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In Many Cases Additional Firms Do Not Try to Compete

Question 90

Multiple Choice

In many cases additional firms do not try to compete with a natural monopoly because:


A) the natural monopoly doesn't make a huge profit
B) they are unsure of the size of the market in general
C) they know they cannot achieve the same low costs that the monopolist enjoys
D) they fear retaliation in the form of pricing wars from the natural monopolist

Correct Answer:

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