A natural monopoly owes its existence to
A) control of a key input.
B) persistently declining long-run average costs as scale increases.
C) patents.
D) increasing marginal returns and the ability to obtain quantity discounts from suppliers.
B
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How are the domestic sellers and buyers of a good affected if a country starts importing the good?
What will be an ideal response?
If the wage increases, the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate inward around the point where only capital is employed in production. D) shift inward in parallel fashion.
Which statement is true?
A. The minimum point on the firm's marginal cost curve is the shutdown point. B. The minimum point on the firm's marginal cost curve is the break-even point. C. The minimum point on the firm's average variable cost curve is the shutdown point. D. The minimum point on the firm's average total cost curve is the shutdown point.
Which of the following adjustments makes a difference for the measurement of income inequality?
A) using families instead of households B) using before taxes and transfers versus after C) using longitudinal data versus static data D) all of the above