When Economies of Scale Exist So That One Firm Can

question 79

Multiple Choice

When economies of scale exist so that one firm can meet the entire market demand at a lower average total cost than two or more firms,

• A) a natural monopoly develops.
• B) the monopoly encounters competition.
• C) economic profit is reduced to zero.
• D) the monopoly converts all of the consumer surplus into economic profit.
• E) there is always the opportunity to price discriminate.

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Definitions:

Psychological Factors

Elements of human behavior that influence thoughts, emotions, and actions, including beliefs, attitudes, and mood.

Psychopathic

Relating to or characterized by psychopathy, a personality disorder typified by persistent antisocial behavior, impaired empathy and remorse, and bold, disinhibited, and egotistical traits.

Canadian Population

The demographic total of people residing in Canada, encompassing various ethnicities, cultures, and languages.

PCL-R

The Psychopathy Checklist-Revised, a diagnostic tool used to assess the presence of psychopathy in individuals.