The Fundamental Constraint on a Monopoly Firm's Exercise of Market

question 91

Multiple Choice

The fundamental constraint on a monopoly firm's exercise of market power is

• A) government regulation.
• B) market demand.
• C) diseconomies of scale.
• D) decreasing marginal revenue.

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Definitions:

Individual Preferences

The specific likes, dislikes, desires, and needs that vary from one person to another, influencing their behavior and choices.

Job Design

The process of outlining the tasks, responsibilities, and systems to be used by employees in their roles to maximize efficiency and job satisfaction.

Task Variety

The degree to which a job or role involves a range of different activities requiring various skills and talents.

Job Characteristics Model

A theory that proposes that the nature of one's job can affect job satisfaction, and identifies five core job dimensions that can motivate individuals and enhance job satisfaction.