A Monopoly Is Most Likely to Emerge and Be Sustained

question 176

Multiple Choice

A monopoly is most likely to emerge and be sustained when

• A)output demand is relatively elastic.
• B)firms have U-shaped average-total-cost curves.
• C)fixed capital costs are small relative to total costs.
• D)economies of scale are large relative to market demand.

---

Definitions:

Cognitive Needs

Psychological requirements for knowledge, meaning, and understanding, driving individuals to seek information and engage in intellectual activities.

Esteem Needs

A higher-level psychological need pertaining to gaining the respect, status, recognition, and self-esteem one desires.

Incongruent Self-Concept

A state where there is a mismatch between one's self-perception and the reality of one's attributes or experiences.

Unconditional Affection

An affectionate feeling or action shown towards someone regardless of their actions or faults.