Suppose That You Build a High-Speed, Magnetically Powered Transportation System

question 9

Multiple Choice

Suppose that you build a high-speed, magnetically powered transportation system from New York to Los Angeles, and you are the only firm providing this service. High fixed costs resulting from the enormous quantity of capital used in this system enable decreasing average cost for any conceivable level of demand. Your monopoly would result from:

• A) control of a scarce resource or input.
• B) technological superiority.
• C) increasing returns to scale.
• D) government-set barriers.

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Definitions:

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Beneficence

A principle in ethics that refers to the act of doing good or providing benefits to others.

Confidentiality

The ethical and often legal duty to protect personal information from unauthorized disclosure.

Family Violence

Acts of violence and abuse among family members, including physical, emotional, and sexual abuse.