To Be a Natural Monopoly a Firm Must

question 63

Multiple Choice

To be a natural monopoly a firm must

• A) control a key resource input.
• B) have economies of scale that are so large that it can supply the entire market at a lower cost than two or more firms.
• C) have significant network externalities.
• D) be very large relative to the total market.

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Definitions:

Total Quality Management

An organizational approach that seeks continuous improvement in all aspects of operations through the involvement of all employees, aiming to achieve long-term success through customer satisfaction.

Organization-Wide Commitment

A unified dedication across all levels of an organization to achieve its mission, values, and goals.

Continuous Improvement

An ongoing effort to enhance products, services, or processes by making incremental improvements over time or through significant changes at once.

Market Research Surveys

The collection of information and insights from targeted market segments to assess preferences, behaviors, and perceptions regarding products or services.