Scenario 15-1 Consider a Transportation Corporation Named Reading's That Has Just Completed

question 355

Multiple Choice

Scenario 15-1
Consider a transportation corporation named Reading's that has just completed the development of a new light rail system in Minneapolis. Currently, there are plenty of seats on the train, and it is never crowded. Its capacity far exceeds the needs of the city. After just a few years of operation, the shareholders of Reading's experienced incredibly high rates of return on their investment due to the profitability of the corporation.
-Refer to Scenario 15-1. Which of the following statements is most likely to be true? (i) New entrants to the market know they will have a smaller market share than Reading's
Currently has.
(ii) Reading's is a natural monopoly.
(iii) Reading's is most likely experiencing increasing average total cost.

• A) (i) and (ii) only
• B) (ii) and (iii) only
• C) (i) and (iii) only
• D) (i), (ii), and (iii)

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Definitions:

Liquid Medication

Medicines that are in a liquid form, often prescribed for ease of ingestion or for faster absorption.

Eye Ointment

A medication formulated for application to the eyes, used to treat or prevent various eye conditions.

Instillation

The process of slowly pouring or dropping a liquid into a body cavity or onto a surface.

Lower Eyelid

The lower portion of skin and tissue that covers and protects the eye; essential in the blink reflex and helps maintain eye moisture.