Large Minimum Efficient Scale of Plant Combined with Limited Market

question 110

Multiple Choice

Large minimum efficient scale of plant combined with limited market demand may lead to

• A) natural monopoly.
• B) patent monopoly.
• C) government franchise monopoly.
• D) shared monopoly.

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Definitions:

Common Region

A principle of perceptual organization where elements located within the same bounded space are perceived as being grouped together.

Closure

The psychological phenomenon of seeking a sense of resolution or completeness in perceptual or cognitive processes.

Contiguity

A Gestalt principle of perception; the tendency to perceive two things that happen close together in time as being related.

Continuity

A Gestalt principle of perception; the tendency to perceive things as simply as possible with a continuous pattern rather than with a complex, broken-up pattern.