When Economies of Scale Exist So That One Firm Can

question 79

Multiple Choice

When economies of scale exist so that one firm can meet the entire market demand at a lower average total cost than two or more firms,

• A) a natural monopoly develops.
• B) the monopoly encounters competition.
• C) economic profit is reduced to zero.
• D) the monopoly converts all of the consumer surplus into economic profit.
• E) there is always the opportunity to price discriminate.

Discern the importance of employee welfare goals in creating a positive work environment and contributing to overall business success.

Understand market share as a critical indicator of company performance and its calculation.

Comprehend the role of marketing dashboards in monitoring and managing marketing performance.

Appreciate the significance of social responsibility goals for corporate reputation and stakeholder engagement.

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Definitions:

Innings

A division or segment of a game in sports like cricket and baseball, where one team takes turns batting and the other fields.

Histogram

A graphical representation of the distribution of numerical data, using bars to show the frequency of data in successive numerical intervals of equal size.

Skewed

Describes a distribution that is not symmetrical, with data points that are more frequent on one side than the other.

Acres

A unit of area used primarily in the United States, equal to 4,840 square yards or about 4,047 square meters.