Suppose That You Build a New Jumbo Jet That Can

question 1

Multiple Choice

Suppose that you build a new jumbo jet that can carry five times more passengers than any other competitor.You have high fixed costs due to the quantity of capital used to build the jets.There's decreasing average cost for all levels of demand.In this case, your monopoly would result from which of the following?

• A)sunk costs
• B)location
• C)economies of scale
• D)government restrictions

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