A firm that is a natural monopoly
A) can supply the entire market at a lower average total cost than two or more firms.
B) has very small fixed costs and very large marginal costs.
C) is infrequently regulated because having one firm serve the market is economically sound.
D) cannot make an economic profit if it is not regulated because it must serve a very large customer base.
E) produces the efficient quantity of output when it is not regulated.
A
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The following graph depicts demand.
The slope of the demand curve (ignoring the negative sign) is:
A. 1. B. 2. C. 0.5. D. 1.5.
Suppose in Italy producers can make 10,000 dresses or 1,000 coats per day, while in Canada producers can make 14,000 similar dresses or 2,000 similar coats per day. Therefore
A) 1 dress costs 7 coats in Italy. B) 1 dress costs 10 coats in Italy. C) 1 coat costs 7 dresses in Canada. D) 1 coat costs 10 dresses in Canada.
Which of the following are endogenous variables within the classical model?
a. output b. technology c. quantity of money d. level of capital e. a, b, and d
Which of the following most accurately describes changes in life expectancy?
a. Life expectancy was relatively low until 1750, after which it increased rapidly. b. Life expectancy has increased steadily during the past 6,000 years. c. Life expectancy was low until after World War II, after which it increased very quickly. d. Life expectancy has exhibited significant cyclical patterns of growth and decline.