Suppose That You Build a New Jumbo Jet That Can

question 13

Multiple Choice

Suppose that you build a new jumbo jet that can carry five times more passengers than any other competitor. You have high fixed costs due to the quantity of capital used to build the jets, and average cost is decreasing for all levels of demand. In this case, your monopoly would result from:

• A) sunk costs.
• B) location.
• C) economies of scale.
• D) government restrictions.

---

Definitions:

Misused Word(s)

Words that are incorrectly used in place of others, often compromising the clarity and correctness of communication.

Try And

A colloquial expression often criticized in formal writing for being grammatically incorrect, with "try to" being the preferred form.

Capitalization

The writing of a word with its first letter in uppercase and the remaining letters in lowercase, used for proper nouns and at the beginning of sentences.

Buddha

The title for Siddhartha Gautama, a spiritual leader and founder of Buddhism, who lived in the 6th to 4th century BCE in India.