A natural monopoly, left to itself,
a. will take over other industries
b. will produce the quantity that minimizes long-run average total cost
c. will produce the quantity that minimizes marginal cost
d. will produce an inefficient level of output
e. will charge an inefficiently low price
D
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If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$50 / (1 + .08)3] + [$500 / (1 + .08)3]," which of the following is correct?
A) The face value is $500, the coupon is $50, and the coupon will mature in 3 years. B) The face value is $50, the interest rate you need is 8 percent, and the coupon will mature in 3 years. C) The coupon is $50, the interest rate you need is 1.08 percent, and the coupon will mature in 3 years. D) The face value is $500, the interest rate you need is 3 percent, and the coupon will mature in 8 years.
An increase in the expected rate of inflation would
A) shift the short-run Phillips curve upward. B) shift the short-run Phillips curve downward. C) shift the long-run Phillips curve to the right. D) shift the long-run Phillips curve to the left.
When a variable is top coded, its value is known only up to a certain threshold.
Answer the following statement true (T) or false (F)
Free trade policies may lead to
A) a decrease in world output. B) price increases in world markets. C) some labor sectors experiencing some short-term job loss. D) none of the above.