Suppose in an Industry a Firm Realizes Economies of Scale

question 12

Multiple Choice

Suppose in an industry a firm realizes economies of scale over the entire length of its LRAC curve.In this situation,the firm is

• A)a natural monopoly.
• B)a fixed-cost monopoly.
• C)an output-discriminating monopoly.
• D)a perfect-price discriminating monopoly.
• E)a constant total variable cost monopoly.

---

Definitions:

Idea Generation

The process of creating, developing, and communicating new concepts or solutions.

Innovation Process

A systematic approach that involves the generation, development, and implementation of new ideas, products, or services to create value or solve a problem.

Problem-Solving

The process of identifying a problem, generating possible solutions, and implementing a solution to address the issue.

Problem-Solving

The process of identifying solutions to specific issues that are typically obstacles to reaching one’s goal.