Some Firms Give Employees Extensive Data on the Performance of and Prospects

question 9

True/False

Some firms give employees extensive data on the performance of and prospects for their operation, in order to make employees feel committed.

---

Definitions:

Natural Monopoly

A natural monopoly occurs when a single firm can supply the entire market at a lower cost than could be achieved by multiple firms due to economies of scale.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Imperfect Competitors

Firms or entities in a market structure where they have some control over the price of their products, due to lack of perfect competition.

Natural Monopolies

Market situations where due to high fixed costs or unique resources, a single firm can supply a product or service more efficiently than any potential competitor, often resulting in regulation.