An unregulated natural monopoly can lead to
A. Higher prices for consumers.
B. Loss of economies of scale.
C. An optimal mix of output.
D. Marginal cost pricing.
Answer: A
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At a trough in the business cycle, the macroeconomic equilibrium is ________ the level of potential real GDP
A) equal to B) rising above C) greater than D) less than E) None of the above answers is always correct because the relationship depends on whether the previous phase of the business cycle had been a recession or an expansion. The table gives the aggregate demand and aggregate supply schedules for a nation.
Suppose that there are five bottles of lemonade, each of which gives a consumer the same level of utility. According to the law of diminishing marginal utility, how can the consumer receive the highest utility?
a. Consume all five bottles in the next hour b. Consume all five bottles today c. Consume all five bottles in one day next week d. Consume two bottles today and three tomorrow e. Consume one bottle each day for the next five days
Influence cost is a type of _____ incurred while filling positions that have similar responsibilities but carry different pay
a. deadweight loss b. opportunity cost c. externality d. social cost
Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table.Number of Mugs Per DayTotal Cost Per Day0$101$142$193$254$325$406$49 If the market for mugs is perfectly competitive, and mugs sell for $7.50 each, then at his profit-maximizing level of output, Chris will earn a ________ of ________ per day.
A. profit; $30 B. loss; $2 C. profit; $2 D. loss; $10