Which of the following refers to a natural monopoly?
a. A monopoly resulting from government control
b. A monopoly resulting from economies of scale
c. A monopoly resulting from output leadership
d. A monopoly resulting from a large advertising budget
e. A monopoly resulting from trade restrictions
b
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Sandra wants to purchase a Nitro scooter from the only Nitro dealer in town, but the dealer will not sell her the scooter unless she also purchases an extended warranty for $1,000
Sandra does not want to purchase the extended warranty from the dealer because she knows she can purchase the exact same warranty from her insurance company for $500. In this instance, the Nitro dealer appears to be violating one of the provisions of A) the Sherman Act. B) the Clayton Act. C) the Federal Trade Commission Act. D) the Robinson-Patman Act.
The market outcome in a duopoly with homogeneous products is similar to that in ________
A) a perfectly competitive market B) a monopolistically competitive market C) a monopoly D) an oligopoly with differentiated products
The winners from a Japanese tariff on imported cars are I. Japanese car producers. II. Japanese car consumers. III. the Japanese government
A) only I and III B) only I C) only II D) I, II, and III
A U-shaped long-run average cost curve implies that a firm experiences economies of scale at low levels of production and diseconomies of scale at high levels of production
Indicate whether the statement is true or false