Asked by
Elizabeth Adkins
on Oct 12, 2024
Verified
Which of the following is false?
A) The basis for monopoly in the automobile industry would most likely be economies of scale.
B) The DeBeers Diamond Company is NOT a natural monopoly.
C) Big business has a great deal of economic and political power.
D) The average American CEO pulls down 25 to 40 times the earnings of the average worker.
Natural Monopoly
A market structure where a single firm can supply a good or service to an entire market at a lower cost than could two or more firms due to economies of scale.
Economic Power
The capacity of an entity, whether a nation, corporation, or individual, to influence or control economic activities and outcomes.
- Examine the role and effects of economies of scale in establishing monopolies.
- Identify barriers to entry in monopolistic markets.
Verified Answer
KR
Learning Objectives
- Examine the role and effects of economies of scale in establishing monopolies.
- Identify barriers to entry in monopolistic markets.