When a Natural Monopoly Exists, It Is

question 126

Multiple Choice

When a natural monopoly exists, it is

• A)always cost effective for government-owned firms to produce the product.
• B)never cost effective for one firm to produce the product.
• C)always cost effective for two or more private firms to produce the product.
• D)never cost effective for two or more private firms to produce the product.

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Definitions:

Management By Exception

Leadership that involves the leader taking corrective action on the basis of the results of leader–follower transactions.

Corrective Actions

Steps taken to rectify a process, issue, or behavior that deviates from the set standard, aiming to prevent recurrence of the deviation.

Anticipates Problems

The ability to foresee and address issues before they manifest into significant challenges.

Transactional Leadership

A leadership style that focuses on the exchange between leader and followers, where leaders offer rewards for achievement and punishment for failure.