A Natural Monopoly

question 4

Multiple Choice

A natural monopoly:

• A) has an average total cost curve that reaches minimum at a low level of output.
• B) is usually subject to antitrust suits.
• C) is usually allowed to choose its price so as to maximize profits in the United States.
• D) occurs when a single firm can supply the entire market demand for a product at a lower average total cost than would be possible if two or more firms supplied the market.

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Definitions:

Lower-order Needs

In the context of Maslow's hierarchy, these are basic physiological and safety needs that individuals seek to fulfill before achieving higher-level needs.

ERG Theory

A motivational theory proposed by Clayton Alderfer that categorizes human needs into existence, relatedness, and growth needs.

Growth Needs

Desires for personal growth and development.

Motivational Concepts

Theories or ideas that explain how and why individuals are driven to behave in certain ways to achieve personal or professional goals.