Refer to the Information Provided in Figure 13

question 179

Multiple Choice

Refer to the information provided in Figure 13.8 below to answer the question that follows. Figure 13.8
-Refer to Figure 13.8. The only firm producing electricity has the long-run average total cost curve shown. The total amount of demand for kilowatts is 100,000 per hour. It makes economic sense for this firm to be the only producer of electricity because this firm

• A) must be realizing economies of scale in producing electricity.
• B) must have a patent on the production process necessary to produce electricity.
• C) must have control over a scarce factor of production.
• D) must have a government franchise to produce electricity.

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Definitions:

Closing Phase

The final stage of a project or process in which objectives are confirmed as met and the project is formally concluded.

Question-Response Phase

A part of a conversation or interaction where questions are asked and answers are provided, facilitating the exchange of information.

Opening Phase

The initial stage of a communication or interaction where parties establish rapport and identify the purpose of their exchange.

Orientation Phase

The initial stage of a process or relationship where parties become acquainted with procedures, expectations, or each other.