If a Natural Monopolist Were to Sell at the Price

question 63

Multiple Choice

If a natural monopolist were to sell at the price where marginal cost equals demand,then it would be earning

• A) zero economic profits,like a competitive firm in the long-run.
• B) negative profits and would not be able to survive.
• C) positive profits but not would not need to worry about government intervention to regulate it.
• D) positive profits but would still need to worry about possible government intervention to regulate it.

Understand the process and implications of ending a contract by agreement.

Distinguish between different scenarios that lead to the discharge of contracts, including frustration and performance.

Analyze the remedies available for breach of contract, including specific performance and damages.

Understand the use and impact of fundamental breach concept on contract enforcement.

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Definitions:

FOB Shipping Point

A delivery term indicating that the buyer assumes responsibility for the goods and the risk of damage at the moment the goods leave the seller's premises.

FOB Destination

A shipping term indicating that the seller bears delivery costs and retains ownership until the goods are delivered to the buyer.

Sales Bonuses

Additional compensation given to employees, usually sales personnel, based on performance and achievement of sales targets.

Ownership

Refers to the legal rights and interests a person or entity has in a property, asset, or business, entitling them to use, manage, and enjoy its benefits.