For a monopoly to be a natural monopoly,
A. there must be constant returns to scale.
B. the long-run average cost curve must continue to increase until it hits the market demand curve.
C. economies of scale must be realized at a scale that is small relative to the market.
D. economies of scale must be realized at a scale that is close to total demand in the market.
Answer: D
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Which of the following is not a determinant of supply?
a. input prices b. technology c. tastes d. expectations
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
In the article "Men vs. Women: How They Spend,"
A. Both sexes spend the same amount of money on clothing purchases. B. Both sexes spend more than they earn. C. Women earn more than men. D. Both sexes make the same annual income.
A market situation in which there are very few sellers is
A. perfect competition. B. monopolistic competition. C. oligopoly. D. monopoly.