What Must a Monopoly, Such as a Public Utility, Account

question 196

Multiple Choice

What must a monopoly, such as a public utility, account for when setting its prices?

• A) A monopoly, because it has no competitors, can set prices as high as it likes.
• B) A monopoly must consider customer demand, and then set prices at the most profitable level.
• C) A monopoly must take into account what its top competitors are charging for the same product or service.
• D) A monopoly has no say in what prices it will charge because the government sets the prices for all monopolistic industries.
• E) A monopoly must look at the importance of each client, and then determine what respective rate each will be charged.

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Definitions:

Leader Style

Refers to the characteristic ways in which a leader behaves in order to influence the members of a group toward a goal.

Follower Characteristics

Refers to the traits, behaviors, and attributes of individuals who are led by others in various contexts.

Work Setting

pertains to the physical and social environment in which individuals perform their job tasks.

Path-goal Theory

A leadership theory that suggests a leader's effectiveness is based on their ability to clear paths for their followers' goals, through the use of different leadership styles.