A firm that is a natural monopoly
a. is not likely to be concerned about new entrants eroding its monopoly power.
b. is taking advantage of diseconomies of scale.
c. would experience a lower average total cost if more firms entered the market.
d. All of the above are correct.
a
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Inflation target refers to the commitment of central bankers to keep inflation below a certain rate for the next year or two
a. True b. False Indicate whether the statement is true or false
Cost-benefit analysis can be applied to individual decision-making and public choice theory
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
A) Special interest groups are more likely to push for policies that increase the size of the economic pie than to increase their slice of the pie. B) Special interest groups are likely to push for policies that increase the size of their slice of the economic pie even if it means that the overall size of the economic pie will shrink. C) Special interest groups are more likely to favor policies that increase the size of their slice of the economic pie than policies that favor economic growth. D) a and c E) b and c