Which of the Following,if True,is the Best Example of a Natural

question 13

Multiple Choice

Which of the following,if true,is the best example of a natural monopoly?

• A)The oil distribution industry where one distribution network serves the whole market
• B)The pharmaceutical industry where patents form a barrier to entry
• C)The beverages industry where the cost of capital is high and variable costs are low
• D)The hospitality industry where variable costs are higher than fixed costs

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Definitions:

Maintenance Factors

Elements that contribute to the upkeep and preservation of a system, equipment, or facility to ensure its optimal performance.

Herzberg's Theory

A motivational theory that suggests job satisfaction and dissatisfaction arise from two different sets of factors: motivators and hygiene factors.

Job Design

The process of organizing work into tasks and responsibilities to improve employee satisfaction, productivity, and effectiveness within an organization.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love, esteem, and self-actualization, in that order.