If Economies of Scale in an Industry Are So Extensive

question 92

Multiple Choice

If economies of scale in an industry are so extensive that a single firm could serve the entire market at a lower cost than if the market was split between two or more firms, this industry is called a(n)

• A)conglomerate
• B)natural monopoly.
• C)oligopoly.
• D)restraint of trade.

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Definitions:

Financial Measures

Quantitative figures used to assess a company's performance, financial health, and prospects for future success.

Controllable Margin

The portion of profit or cost that a manager has the power to directly control or influence through decisions and actions.

Labor Productivity

A measure of economic performance calculated by dividing the output of goods and services by the labor hours devoted to the production of that output.

Controllable Margin

The portion of profit or income generated by a business or department that can be directly controlled or influenced by management decisions.