A Natural Monopoly Exists When, Throughout the Range of Market

question 90

Multiple Choice

A natural monopoly exists when, throughout the range of market demand,

• A)average cost is increasing
• B)there are diseconomies of scale
• C)average cost is decreasing
• D)average cost is constant
• E)marginal cost exceeds average cost

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Definitions:

Work Redesign

A medium-term strategy in which organizations focus on work processes and assess whether specific functions, products, and/or services should be eliminated.

Workforce Reduction

A short-term strategy to cut the number of employees through attrition, early retirement or voluntary severance packages, and layoffs or terminations.

Attrition

The gradual reduction in workforce numbers due to employees leaving naturally through resignation, retirement, or death, without intending to directly replace them.

Early Retirement

The act of leaving one's job or career before the traditional retirement age, often incentivized by employers or chosen for personal or health reasons.