Large Minimum Efficient Scale of Plant Combined with Limited Market

question 374

Multiple Choice

Large minimum efficient scale of plant combined with limited market demand may lead to

• A)natural monopoly.
• B)patent monopoly.
• C)government franchise monopoly.
• D)shared monopoly.

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Definitions:

Testing

The process of evaluating a system or its component(s) to determine whether it meets specified requirements.

Economic Environment

The Economic Environment consists of all external economic factors, such as inflation, unemployment, and economic policies, that influence a business's operating conditions and financial performance.

Operating Profit

This is the profit earned from a firm's core business operations, excluding deductions of interest and taxes.