A natural monopoly occurs when
a. the product is sold in its natural state, such as water or diamonds.
b. there are economies of scale over the relevant range of output.
c. the firm is characterized by a rising marginal cost curve.
d. production requires the use of free natural resources, such as water or air.
b
You might also like to view...
If the exchange rate falls from 120 yen per dollar to 100 yen per dollar, the dollar has ________ and the yen has ________
A) depreciated; appreciated B) appreciated; depreciated C) depreciated; depreciated D) appreciated; appreciated
Long-run equilibrium for a perfectly competitive firm occurs when
a. P = MC = MR = ATC b. MC = MR = AFC = ATC c. MC = MR = P > ATC d. P > MC > MR > ATC e. TR > TC
Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?
Suppose the total monetary value of all final goods and services produced in a particular country in 2010 is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that:
a) GDP in 2010 is $450 billion. b) NDP in 2010 is $450 billion. c) GDP in 2010 is $500 billion. d) inventories in 2010 fell by $50 billion.