Figure 11-6
The industry described in Figure 11-6
A. is not a natural monopoly because no firm would produce in the long run unless the government intervened in the market.
B. is not a natural monopoly because the average total cost curve is U shaped.
C. is a natural monopoly because the economic profit is positive for a monopolist if the government doesn’t intervene.
D. is a natural monopoly because price is less than average total cost at the output that would be produced by the industry under perfect competition.
Answer: D
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Which of the following could result in a negative network externality?
a. snob effect; standardization b. bandwagon effect; congestion c. bandwagon effect; standardization d. snob effect; congestion
The demand for computer programmers is inseparably tied to the supply of computer software
a. True b. False Indicate whether the statement is true or false
Figure 18-3
In which panel of Figure 18-3 would an excise tax be borne entirely by the supplier?
A. 1 B. 2 C. 3 D. 4