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Which One of the Following Situations Can Create a Natural

Question 14

Multiple Choice

Which one of the following situations can create a natural monopoly?


A) A firm lobbies the government to block other firms from entering the market.
B) A firm innovates a new product and gains a patent over it.
C) A firm operates in an industry that requires very low start-up costs.
D) A firm operates in an industry that requires very high start-up costs.

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