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

question 449

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 is most likely experiencing rising marginal cost.
(iii) MCM is most likely experiencing declining average total cost.
(iv) MCM is a natural monopoly.

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

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Definitions:

Genetic Origins

The hereditary aspects and biological background that influence an individual's physical and behavioral traits.

Manie Sans Delire

A historical term describing a psychological condition of mania without delusion, often related to what is now understood as bipolar disorder or specific forms of mania.

DSM-5

The 5th edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized classification system for diagnosing mental disorders used by mental health professionals in the U.S.

Histrionic

Relates to a pattern of excessive emotionality and attention-seeking behavior; often associated with Histrionic Personality Disorder.