Suppose That You Build a New Jumbo Jet That Can

question 74

Multiple Choice

Suppose that you build a new jumbo jet that can carry five times more passengers than can 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.

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Definitions:

Early Enthusiasm

The intense eagerness and interest shown in the initial stages of undertaking a new project, activity, or idea.

Phoenix Phenomenon

A concept that describes emerging stronger or better from a catastrophe or significant trauma.

Working Well

A state of functioning effectively and efficiently with good results or outcomes, often used in the context of organizational or machinery performance.

Behalf

In favor of or representing someone else; acting as an agent for someone.