The Figure Below Shows the Demand Curve and the Long

question 50

Multiple Choice

The figure below shows the demand curve and the long run average cost curve for an electric company.
This market is a natural monopoly because

• A) the long run average cost curve is U-shaped
• B) when producing large quantities, the long run average cost is greater than demand
• C) when producing small quantities, the demand is higher than long run average cost
• D) the demand curve intersects the long run average cost curve at a point where the long run average cost curve is downward sloping

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Definitions:

Traditional Bargaining

The conventional process of negotiation between unions and employers focused primarily on wages, hours, and other basic working conditions.

Direct Dealing

An approach where employers and employees negotiate employment terms without the mediation of a labor union, emphasizing direct interaction and agreement.

Arbitrator

A neutral third-party individual who is chosen to resolve a dispute between parties outside of court, often used in labor disputes to decide on fair terms of agreements or contracts.

Binding Arbitration

A dispute resolution process where an impartial third party makes a decision that is legally binding on both sides involved in the dispute.