Figure 15-4 Figure 15-4 Shows the Demand and Cost Curves for a and Cost

question 152

Multiple Choice

Figure 15-4

Figure 15-4 shows the demand and cost curves for a monopolist.
-Refer to Figure 15-4.What is likely to happen to this monopoly in the long run?

• A)New firms will enter the market to eliminate its profits.
• B)It will expand its output to take advantage of economies of scale so as to further increase its profit.
• C)As long as there are entry barriers, this firm will continue to enjoy economic profits.
• D)It will be regulated by the government because of its excess profits.

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Definitions:

Span of Control

describes the number of subordinates a manager or supervisor can directly control or oversee effectively.

Traditional Management Theorists

Scholars and practitioners from the past who developed foundational principles and practices of management and organizational structure, focusing on efficiency and hierarchical control.

Formal Hierarchy

An organizational structure that defines a clear arrangement of roles, responsibilities, and power within an organization, typically visualized in a pyramid shape.

Non-Routine Situations

Scenarios or circumstances that deviate from the regular, expected, or standardized processes.