If a Leader Has Power to Punish the Follower for Not

question 38

True/False

If a leader has power to punish the follower for not following rules or guidelines, the leader has referent power.

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Definitions:

Marginal Revenue

The increase in income resulting from the sale of one extra product or service unit.

Natural Monopoly

A market condition where a single firm can supply a product or service at a lower cost than any potential competitor, often due to economies of scale.

Cheaper Service

A service offered at a lower price relative to other similar services, emphasizing cost-effectiveness.

Perfect Competitor

A theoretical market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can affect the market price.