The Defining Characteristic of a Natural Monopoly Is

question 290

Multiple Choice

The defining characteristic of a natural monopoly is

• A)constant marginal cost over the relevant range of output.
• B)economies of scale over the relevant range of output.
• C)constant returns to scale over the relevant range of output.
• D)diseconomies of scale over the relevant range of output.

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Definitions:

Escalation of Commitment

The tendency to continue investing in a project or decision despite evidence of its failing prospects, often due to psychological commitment.

Overconfidence

The state of being excessively confident, often leading to underestimating risks, challenges, or the abilities of others.

Too Much Time

Too much time typically refers to scenarios where there is an excess of available time which could lead to inefficiency or procrastination.

General Decision-making Model

A step-by-step approach to making decisions that typically starts with identifying a problem, generating alternative solutions, evaluating the alternatives, and then selecting and implementing the best solution.