For a Long While, Electricity Producers Were Thought to Be

question 139

Multiple Choice

For a long while, electricity producers were thought to be a classic example of a natural monopoly. People held this view because

• A)the average cost of producing units of electricity by one producer in a specific region was lower than if the same quantity were produced by two or more producers in the same region.
• B)the average cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more produced in the same region.
• C)the marginal cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more producers in the same region.
• D)electricity is a special non-excludable good that could never be sold in a competitive market.

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Definitions:

Management Process

A systematic approach to managing and optimizing an organization's resources and operations towards achieving its objectives.

Alternative Actions

Different courses of action or strategies that can be taken in a given situation.

Decision Making

A component inherent in the other management processes of planning, directing, controlling, and improving.

Product Assembly Labor

The labor costs associated with putting together the final product in a manufacturing process.