A market in which the entire demand for a good or service can be satisfied at the least cost by a single firm is a:
A. horizontal market.
B. natural monopoly.
C. contestable market.
D. perfect market.
Answer: B
You might also like to view...
In 2009, tickets to a Presidential Town Hall meeting were distributed to individuals through a random selection of those who registered on a website. The tickets were allocated by which method?
A) lottery B) majority rule C) contest D) first-come, first-served E) personal characteristics
For a monopolist to earn a positive economic profit, price has to exceed average total cost at the level of output at which marginal revenue equals marginal cost
Indicate whether the statement is true or false
________ in the expected future domestic exchange rate causes the demand for domestic assets to ________ and the domestic currency to appreciate, everything else held constant
A) An increase; increase B) An increase; decrease C) A decrease; increase D) A decrease; decrease
The first welfare theorem:
A. tells us that, in a general equilibrium with perfect competition, the allocation of resources is Pareto efficient. B. clarifies how the "invisible hand" of the market guides people toward socially undesirable choices. C. tells us that a general equilibrium with perfect competition is not Pareto efficient. D. is also the only welfare theorem.