A good produced by a natural monopoly is ?
Correct answer: C. not rival but excludable
- A. rival but not excludable
- B. neither rival nor excludable
- C. not rival but excludable
- D. both rival and excludable
Explanation
A natural monopoly typically supplies a good or service with high fixed costs and low marginal costs, making consumption largely non-rival while access can be restricted by the provider. This gives the combination of non-rival and excludable.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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