A natural monopoly always has
A. a downward sloping marginal cost curve.
B. its profit maximization point where price = marginal cost.
C. patent rights.
D. a downward sloping long run average cost curve.
Answer: D
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Fill in the blank: According to your textbook authors, ________ is a key condition for competition to occur
A) government regulation of price B) government regulation of output C) preservation of profit D) freedom of entry
What is the difference between a firm's marginal revenue and its marginal revenue product?
A) Marginal revenue is the change in sales revenue from selling one more unit of output while marginal revenue product is the change in total revenue from hiring one more worker. B) There is no difference between the two terms. C) Marginal revenue is the increase in revenue when a firm raises its output price while marginal revenue product is the increase in marginal product when a firm hires an additional worker. D) Marginal revenue is the change in sales revenue from selling one more unit of output while marginal revenue product is the profit earned from hiring one more worker.
Price for a 27 TV = $450. Consumers buy 1000 of them, prices rises to $550 by 600 of them. What is the price elasticity of demand in this range?
What will be an ideal response?
Suppose the economy is initially at equilibrium, in which total planned real expenditures equals real GDP. Which of the following will occur if there is an increase in autonomous investment?
A. Inventories will not change and production of goods and services will not change either. B. Inventories will decrease immediately and production of goods and services will increase until real GDP catches up with total planned real expenditures. C. Both inventories and production of goods and services will increase. D. Inventories will increase immediately and production of goods and services will decrease until real GDP catches up with total planned real expenditures.