Scenario 15-1 Consider a Transportation Corporation Named C.R. Evans That Has Just

question 244

Multiple Choice

Scenario 15-1
Consider a transportation corporation named C.R. Evans that has just completed the development of a new subway system in a medium-sized town in the Northwest. Currently, there are plenty of seats on the subway, and it is never crowded. Its capacity far exceeds the needs of the city. After just a few years of operation, the shareholders of C.R. Evans experienced incredible rates of return on their investment due to the profitability of the corporation.
-Refer to Scenario 15-1.Which of the following statements is most likely to be true?
(i) New entrants to the market know they will have a smaller market share than C.R.Evans currently has.
(ii) C.R.Evans is most likely experiencing increasing average total cost.
(iii) C.R.Evans is a natural monopoly.

• A) (i) and (ii) only
• B) (ii) and (iii) only
• C) (i) and (iii) only
• D) (i), (ii), and (iii)

---

Definitions:

Dependent Variable

In an experiment or study, the variable that is being tested and measured, often to see the impact of variations in the independent variable.

Randomization

In an experiment involves assigning each individual by chance processes.

Control Group

In experimental research, a group of subjects that does not receive the treatment being tested, used for comparison against the group that does.

Random Sampling

A technique for selecting a sample from a population in a way that every member has an equal chance of being chosen.