Question

19 multiple choice 1 point
a ____________ exists when the quantity demanded in the market is less than the quantity at the bottom of the long - run average cost curve.
○ natural monopoly
○ monopoly
○ oligopoly
○ monopolistic competition
20 multiple choice 1 point
which of the following is most unlikely to present a barrier to entry into a market?
○ market forces
○ patent laws
○ technological advantages
○ deregulation

Explanation:

Question 19

A natural monopoly occurs when a single firm can supply the entire market at a lower cost than multiple firms, often because the quantity demanded is less than the quantity at the minimum of the long - run average cost curve (so having more than one firm would be inefficient). A monopoly is a general term for a single - seller market, oligopoly is a market with a few large firms, and monopolistic competition has many firms with differentiated products. So the correct answer is related to the definition of natural monopoly.

Patent laws create legal barriers to entry as they give exclusive rights to inventors. Technological advantages can make it hard for new firms to compete as they may not have the same technology. Deregulation reduces government - imposed barriers to entry. Market forces (like supply and demand dynamics) are not typically considered a barrier to entry; they are more about how the market operates. So deregulation is most unlikely to be a barrier to entry.

Answer:

A. natural monopoly

Question 20