Which of the Following Conditions Would Be LEAST Likely to Lead

question 50

Multiple Choice

Which of the following conditions would be LEAST likely to lead to a monopolistic market structure?

• A) possession of patent rights for basic production processes
• B) control over the entire supply of a basic input
• C) the need to be a price taker in order to sell in the market
• D) significant economies of scale leading to declining average cost until the entire market demand is satisfied
• E) exclusive rights to sell in a particular geographic market

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Definitions:

Production Constraint

Any factor that limits the output of a production process, such as limited machine capacity or shortages of materials or labor.

Constrained Resource

A limited resource that restricts an organization's ability to produce goods or services, affecting throughput and operational efficiency.

Fixed Cost

Expenses that do not change in total over a wide range of activity levels or over the short term, such as rent or salaries.

Special Order

is an order that is outside of a company’s normal production schedule and often requires unique specifications or pricing.