If the Technology for Producing a Good Enables One Firm

question 352

Multiple Choice

If the technology for producing a good enables one firm to meet the entire market demand at a lower average total cost than two or more firms could,then that firm has

• A) patented the market.
• B) a natural monopoly.
• C) increasing average total costs.
• D) a legal barrier to entry.
• E) a discriminatory monopoly.

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Definitions:

Activity-based Costing System

An accounting method that assigns costs to products or services based on the resources they consume.

Change Management Plan

A systematic approach that deals with the transition or transformation of organizational goals, core values, processes, or technologies.

Behavioral Issues

Aspects of organizational behavior that impact employee performance, motivation, and satisfaction, often requiring management strategies to address.

Overhead Costs

Expenses incurred to support business operations that cannot be directly linked to a specific product or service, such as rent, utilities, and administrative salaries.