In a natural monopoly, throughout the range of market demand
A) the marginal cost is above average total cost and pulls average total cost upward.
B) average total cost is above the marginal cost and pulls the marginal cost upward.
C) the marginal cost is below average total cost and pulls average total cost downward.
D) there are diseconomies of scale.
Answer: C
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According to the Bureau of Labor Statistics, to be officially unemployed a person must
A. be in the labor force. B. be waiting to be called back from a layoff. C. have lost a job. D. be 21 years of age or older.
Suppose that over the next few years the demand for dancing to country and western music decreases. Hence, at country and western dance clubs the equilibrium price of admission ________ and the equilibrium quantity of dancing ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; decreases
Suppose that all pizza companies have the same costs and the minimum average total cost is $12 per pizza. The pizza companies have an efficient scale of 100 pies per night
In the small town of Coatsville, at the price of $12 per pizza the quantity demanded is approximately 300 pizzas per night. This market, therefore, can best be characterized as A) perfectly competitive. B) a natural monopoly. C) a natural duopoly. D) a natural oligopoly.
Tax cuts proposed by the Kennedy and Reagan administrations were followed by robust economic growth
a. True b. False Indicate whether the statement is true or false