An Industry That Realizes Such Large Economies of Scale in Producing

question 285

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) ________ monopoly.

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

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Definitions:

Market Price

The current financial demand for buying or selling a service or asset.

Debt Issue

Refers to a financial obligation or securities, such as bonds, that are issued by a company in order to raise funds.

Capital Structures

Refers to the way a corporation finances its assets through a combination of debt, equity, or hybrid securities.

Equity Plan

A compensation strategy companies use to provide their employees with ownership interest in the company, often through stock options or shares.