The Figure Above Shows a Firm's Demand and Average Total

question 296

Multiple Choice

The figure above shows a firm's demand and average total cost curves.
-The situation in the figure above creates a barrier to entry for a second firm because
i.a second firm that produced as many kilowatt-hours as the first firm would see the market price fall beneath its cost and would incur an economic loss.
ii.a second firm that produced fewer kilowatt-hours than the first firm would have to charge a higher price and would not gain many customers.
iii.the first firm's average total cost curve indicates it has been given a patent for the product.

• A) i only
• B) ii only
• C) iii only
• D) i and ii
• E) i and iii

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Definitions:

Initiating Structure

Leadership behavior characterized by the organization of work, establishment of clear objectives, and the distribution of tasks among team members.

Defines

Defines refers to specifying or explaining the meaning of words, phrases, or concepts.

Prescribes

To recommend or stipulate a specific procedure, remedy, or course of action.

Subordinates

Employees or team members who are lower in rank or position and report to someone higher in the organizational hierarchy.