Additional Firms Often Do Not Try to Compete with a Natural

question 601

Multiple Choice

Additional firms often do not try to compete with a natural monopoly because

• A)they fear retaliation in the form of pricing wars from the natural monopolist.
• B)they are unsure of the size of the market in general.
• C)they know they cannot achieve the same low costs that the natural monopolist enjoys.
• D)the natural monopoly does not make a large profit.

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Definitions:

High Self-Monitoring

A personality trait characterized by an individual's ability to regulate behavior to accommodate social situations, often adaptable and sensitive to social cues.

Preference

The selection or tendency of an individual to favor one alternative over others.

Neuroticism

A trait in the Big Five personality model characterized by emotional instability, anxiety, moodiness, irritability, and sadness.

Situational Effects

The impact that immediate environmental or contextual factors have on an individual's behavior, feelings, or perceptions.