A natural monopoly occurs when
A. there are high fixed costs and continuously decreasing average total costs.
B. there are continuously decreasing average total costs.
C. there are high fixed costs.
D. there are continuously increasing marginal costs.
Answer: A
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Suppose you purchase a bottle of vitamin water with a price of $3. The price of $3 best reflects the function of money as a ________, and when you take $3 out of your wallet to purchase the bottle, money is functioning as a ________
A) medium of exchange; standard of deferred payment B) store of value; unit of account C) unit of account; medium of exchange D) medium of exchange; store of value
Which of the following is responsible for decision making regarding the purchase and sale of bonds by the Fed?
a. the chairman of the Board of Governors of the Federal Reserve System b. the Federal Open Market Operations Committee c. the U.S. Secretary of Treasury d. the president, with the advice and consent of the chairman of the Council of Economic Advisers.
A competitive firm produces notebooks which sell in the market at $2 each. The firm hires 40 workers. If the market price of the notebooks increases to $3.5 each, which of the following statements is true?
a. The firm's labor demand curve will become flatter. b. The firm's labor demand curve will shift outward parallel to itself. c. The firm's labor demand curve will shift outward parallel to itself. d. The firm's labor demand curve will become steeper.
When the government levies a tax that is the same fixed percentage of people's incomes, this tax is known as a(n)
a. regressive tax b. progressive tax c. proportional tax d. excise tax e. a unit tax