Scenario 15-1 Consider a Transportation Corporation Named Reading's That Has Just Completed

question 241

Multiple Choice

Scenario 15-1
Consider a transportation corporation named Reading's that has just completed the development of a new light rail system in Minneapolis. Currently, there are plenty of seats on the train, and it is never crowded. Its capacity far exceeds the needs of the city. After just a few years of operation, the shareholders of Reading's experienced incredibly high 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 Reading's currently has.
(ii)
Reading's is a natural monopoly.
(iii)
Reading's is most likely experiencing increasing average total cost.

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

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Definitions:

Pygmalion Effect

The phenomenon where higher expectations from leaders or teachers lead to an increase in performance among employees or students.

Gross Profitability

A financial metric indicating the revenue left after deducting the cost of goods sold, relative to sales.

Net Sales

The total revenue generated from goods and services, minus returns, allowances, and discounts.

Leadership Development

Leadership development encompasses the activities and training programs designed to foster growth in individuals' ability to lead others effectively.