When natural monopoly is present in an industry, the per-unit costs of production will be
a. lowest when there are a large number of producers in the industry.
b. lowest when a single firm generates the entire output of the industry.
c. lower for small firms than for large firms.
d. minimized at the output that maximizes the industry's profitability.
B
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The size of planned consumption is influenced to a considerable extent by
a. the interest rate. b. whether or not the government is running a deficit. c. how much income people are receiving. d. expected profits.
What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?
The crowding-out effect works through interest rates to:
A. decrease the effectiveness of contractionary fiscal policy. B. decrease the effectiveness of expansionary fiscal policy. C. increase the effectiveness of expansionary fiscal policy. D. increase the effectiveness of contractionary fiscal policy.
Your professor loves his work, teaching economics. He has been offered other positions in the corporate world that would increase his monetary income by as much as 25 percent, but he has decided to continue working as a professor. His decision to continue teaching rather than taking other positions would not change unless
a. the marginal cost of teaching increased above the marginal benefit. b. the marginal benefit of teaching increased above the marginal cost. c. the marginal cost of teaching decreased. d. the marginal benefit of a corporate job decreased.