Additional firms often do not try to compete with a natural monopoly because
a. they fear retaliation in the form of pricing wars from the natural monopolist.
b. they are unsure of the size of the market in general.
c. they know they cannot achieve the same low costs that the natural monopolist enjoys.
d. the natural monopoly does not make a large profit.
c
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A perfectly price-elastic demand is consistent with which of the following?
a. Inferior goods b. A low cross-price elasticity of demand c. A horizontal demand curve d. Few close substitutes
Who did President Jimmy Carter appoint to head the Federal Reserve beginning in 1979?
a. Ben Bernanke b. Alan Greenspan c. Paul Volcker d. Arthur Burns
In 2009-2010 the federal government
A) achieved a budget surplus for the first time in more than a decade. B) ran a budget surplus, and this reduced the size of the national debt. C) financed approximately 40 percent of its expenditures through borrowing. D) ran a budget deficit, and this reduced the size of the national debt.
Mr. Woodard's cabinet shop is experiencing rapid growth in sales. As sales have increased, Mr. Woodard has found it necessary to hire more workers. However, he has observed that doubling the number of workers has less than doubled his output. What is the likely explanation?
A. The law of supply B. The law of diminishing marginal productivity C. The law of demand D. The law of diminishing marginal utility