Natural monopoly exists when:
A. one firm can supply the entire quantity demanded at higher cost than two or more firms.
B. the long-run average cost curve exhibits constant returns to scale.
C. one firm can supply the entire quantity demanded at lower cost than two or more firms.
D. one firm can supply the entire quantity demanded at the same cost as two or more firms.
Answer: C
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What is the most likely effect of deregulation on the supply curve?
a. The supply curve will shift to the left b. The quantity supplied will reduce c. The supply curve will shift to the right d. The supply curve will not be effected
Resource markets are like any other market in that
a. the increase in quantity supplied in response to a higher price will generally be greater in the long run than in the short run. b. the amount demanded of a resource is inversely related to its price. c. higher prices encourage people to search for substitutes. d. all of the above are correct.
Improving the education level of the labor force will
A. shift the production possibilities curve inward. B. not shift the production possibilities curve since the total size of the labor force has not been changed. C. shift the production possibilities curve outward. D. cause a movement from a point inside the production possibilities curve to a point on the curve.
Transfer pricing is used by moving companies
Indicate whether the statement is true or false