If there is just one producer in an industry where the average total cost curve declines throughout the output range up to where it intersects the industry demand curve:
a. the industry will be a natural monopoly
b. charging a price equal to marginal cost would entail economic losses for the producer.
c. charging a price equal to average cost would entail a welfare cost.
d. All of the above would be true.
d
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Macroeconomic equilibrium can occur at any point on the 45-degree line
Indicate whether the statement is true or false
Staggered price setting ________
A) leads to frequent price adjustments B) occurs when firms fail to consider the behavior of their competitors C) is generally illegal D) all of the above E) none of the above
Income disparities alone prove the existence of racial discrimination in the labor market
Indicate whether the statement is true or false
To determine whether a market is perfectly competitive, economists examine the
A. number of firms in the market. B. similarities among the products of the different firms in the market. C. ease of entry and exit by firms in the market. D. All of the responses are correct.