A Natural Monopoly Is Producing an Output Level of 1,000

question 142

Multiple Choice

A natural monopoly is producing an output level of 1,000 units per day.If the monopoly is broken up into 5 firms,then average total cost for each of the 5 firms

• A)will exceed the monopolist's average total cost
• B)will equal the monopolist's average total cost
• C)will fall below the monopolist's average total cost
• D)may equal or fall below the monopolist's average total cost
• E)may equal or exceed the monopolist's average total cost

---

Definitions:

Teamwork

Collaborative effort by a group to achieve a common goal or complete a task in the most effective and efficient way.

Organization Design

The process of structuring an organization's roles, responsibilities, and systems to effectively achieve its goals and adapt to environmental changes.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives based on the expected outcomes.

Effective Communication

The transmission of information in such a way that the message is clearly understood by all parties involved, minimizing misunderstandings.