When an industry is a natural monopoly
A. the economies of scale in it are very great.
B. it would be most efficient to have several (or many) firms competing to supply the market.
C. it has a perfectly elastic industry demand curve.
D. the typical firm's marginal cost curve is everywhere above its average cost curve.
A. the economies of scale in it are very great.
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Employees at La Dola Inc often engaged in hasty decision making that resulted in losses for the company. Because employees were not individually accountable for their decisions, this trend continued
However, when the company introduced a policy of profit-sharing with its employees, they began scrutinizing their decisions carefully before implementing. Explain the reason behind the change in the employees' behavior.
If the aggregate supply curve is upward sloping, then an increase in autonomous consumption leads to a(n)
A) increase in aggregate demand and a rise in the price level. B) decrease in aggregate demand and a rise in the price level. C) decrease in aggregate demand and a fall in the price level. D) no change in aggregate demand and no change in the price level.
A financial strategy that reduces the chance of suffering losses arising from foreign exchange risk is referred to as
A) hedging. B) foreign exchange leverage. C) conversion depletion. D) transaction mitigation.
The most likely reason why Los Angeles has so much smog is that residents
a. do not have strong, enforceable property rights to rapid transit b. do not have strong, enforceable property rights to clean air c. prefer dirty air to the inconvenience of rapid transit d. prefer dirty air to the inconvenience of carpools e. prefer dirty air to the inconvenience of eliminating smog