A Natural Monopoly Exists When

question 77

Multiple Choice

A natural monopoly exists when

• A)a monopolist produces a product, the main component of which is a natural resource.
• B)economies of scale are so large that only one firm can survive and achieve low unit costs.
• C)a firm is the exclusive owner of a key resource necessary to produce the firm's product.
• D)there are no close substitutes for a firm's product.

Recognize the components and benefits of positive competitive teamwork skills.

Understand the concept and benefits of functional conflict in organizations.

Recognize the role of cultural differences in contributing to workplace conflict.

Identify different types of conflict individuals may face in professional scenarios.

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Definitions:

Constant Returns to Scale

A situation in production where increasing all inputs by a certain factor results in output increasing by the same factor.

Competitive Equilibrium

A market state where supply equals demand, resulting in an efficient distribution of goods and services without excess.

Price Ceiling

A government-imposed limit on the price charged for a product, intended to protect consumers from high prices.

Marginal Cost

The additional cost incurred in producing one more unit of a good or service.