Which of the following distinguishes a natural monopoly from monopoly caused by ownership of a vital resource?
A. The natural monopoly has a marginal cost curve above its average cost curve at all levels of output, whereas the marginal cost in other monopolies is above average cost.
B. The natural monopoly does not require any government intervention because it is only efficient to have one large firm supplying the market, but other monopolies do require government intervention to maintain efficiency.
C. The natural monopoly has a downward-sloping long-run average cost curve as opposed to a U-shaped long-run average cost curve.
D. The natural monopoly occurs with naturally occurring products like gold and diamonds, whereas other monopolies occur with man-made products.
Answer: C
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Use the figure below to answer the following question. 
Assume that price increases from $2 to $10. The price elasticity of supply (based on the midpoint formula) associated with this price change is about
A. 0.25 and supply is inelastic. B. 1 and supply is unit-elastic. C. 1.35 and supply is elastic. D. 4 and supply is elastic.
The short-run aggregate supply curve would shift and the long-run aggregate supply curve would remain fixed if
A) there was a temporary shock that influenced the supply side. B) there was a permanent increase in aggregate demand along with a permanent decrease in aggregate supply. C) there was a permanent increase in aggregate demand. D) there was a temporary shock to aggregate demand.
Suppose $100 is deposited in a bank account paying 5% compounded annually. If the interest earned is X after five years, then the interest earned will be 2X after 10 years
Indicate whether the statement is true or false
Suppose the market price of zinc doubles. Which of the following scenarios is most likely?
A) The demand for zinc miners will increase, raising the market wage rate. B) The demand for zinc miners will decrease, reducing the market wage rate. C) The demand for zinc will increase, raising the market price further. D) The demand for zinc miners will decrease, reducing the market price back to its original price.