A sunk-cost monopoly is most likely to result if a single firm:
A) is the only seller in a small town or community.
B) is investor owned, but granted the exclusive right by the government to operate in a market.
C) experiences long-run increasing economies of scale over a wide range of output.
D) has made extensive investments in advertising to establish brand-name recognition among consumers.
Answer
Option D
D) has made extensive investments in advertising to establish brand-name recognition among consumers.
A sunk cost is the cost will not be sued for further decisions as the cost is non-recoverable at the movement so being in the market is important.
The extensive investments in marketing which the strategies of most of the e-commerce shops where the advertisement expenditure is called sunk costs.
A sunk-cost monopoly is most likely to result if a single firm: A) is the only seller in a small town or community. B) i...
A natural monopoly is most likely to result if a single firm: Group of answer choices is the only seller in a community. is investor-owned, but is granted the exclusive right by the government to operate in a market. experiences economies of scale over a wide range of output. has gained control over a strategic input of an important production process.
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