CFA Practice Question

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CFA Practice Question

Which of the following conditions is not one that supports monopoly?

A. Patents, or government's decision to license only one firm
B. Control over an essential natural resource
C. Diseconomies of scale
Correct Answer: C

User Contributed Comments 3

User Comment
frants54 hope no one got that wrong!
maryprz14 lol
Huricane74 @frants54,
Even if you do not know what "diseconomies of scale mean," you should be able to still be able to identify the correct answer through the process of elimination.
A.) Patents and government licences restricted to a single firm support monopolies.
B.) Controlling an essential natural resource results in a monopoly.
This leaves just C as an option.
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