For a Natural Monopoly, the Minimum Efficient Scale Is

question 116

Multiple Choice

For a natural monopoly, the minimum efficient scale is

• A)sometimes smaller and sometimes larger than the size of the market.
• B)larger than the size of the market.
• C)smaller than the size of the market.
• D)equal to the size of the market.
• E)zero.

Apply break-even analysis for businesses selling multiple products.

Recognize assumptions underlying cost-volume-profit analysis and the limitations of these assumptions.

Understand the basic principles of cost-volume-profit (CVP) analysis and its limitations.

Calculate and interpret the break-even point in units and dollars.