Scenario 15-2 Consider a Local, Privately-Owned Electrical Cooperative Named Minny County Megawatts

question 13

Multiple Choice

Scenario 15-2
Consider a local, privately-owned electrical cooperative named Minny County Megawatts (MCM, LLC) . MCM has just completed a natural-gas-burning electrical power plant in the Midwest. Currently, MCM can meet the electricity needs of all residents in the county. In fact, its capacity far exceeds the needs of the county. After just a few years of operation, the shareholders of MCM experienced incredible rates of return on their investment due to the profitability of the corporation.
-Refer to Scenario 15-2.Which of the following statements is most likely to be true?
(i) New entrants to the market know they will have a smaller market share than MCM currently has.
(ii) MCM would experience higher profits if it were government-run.
(iii) MCM is a natural monopoly.

• A) (i) and (ii) only
• B) (ii) and (iii) only
• C) (i) and (iii) only
• D) (i), (ii), and (iii)

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Definitions:

Gantt Chart

A visual project management tool that displays tasks or activities against time, showing project schedules, durations, and dependencies.

Series of Events

A series of events is a sequence of occurrences, actions, or activities that are related or connected in some manner, often leading to a particular outcome.

Graphics

Visual elements such as images, charts, and diagrams used to represent information or data.

Gantt Chart

A visual project management tool that displays tasks or activities against time.