An Industry That Realizes Such Large Economies of Scale in Producing

question 152

Multiple Choice

An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called a(n)

• A)fixed cost monopoly.
• B)patent monopoly.
• C)economies of scale monopoly.
• D)natural monopoly.

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Definitions:

Substantial Impairment

A significant reduction or weakening in strength, value, or quality of an asset or entity's ability to perform its intended function.

Nonconforming

Refers to goods that fail to meet the specifications or requirements set forth in a contract.

Perfect Tender Rule

A legal principle requiring sellers to deliver goods to buyers exactly as specified in their contract, with no deviations.

Course of Performance

A legal concept referring to the conduct between parties in the execution of a contract, helping to interpret or modify the contract's terms.