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.
D
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One of the most significant barriers to economic growth in the world's poorest nations is
A) political freedom. B) dead capital. C) environmental issues. D) U.S. government interference.
Two stores—Lazy Guys and Ralph's Recliners—are located in the same city
Both stores buy recliner chairs from the same manufacturer at the same price and both stores are about the same size, so that the fixed costs of production for both stores are the same. Ralph's Recliners sells more recliners per month and Ralph's has a lower average total cost of production. Which of the following can explain why the average total cost of production is lower for Ralph's Recliners? A) The rent Lazy Guys pays for its building is greater than the rent paid by Ralph's Recliners. B) Ralph's explicit costs are less because Ralph owns the land on which his building is located. Lazy Guys must make lease payments for the land on which its store is located. C) The price of recliners charged by Ralph's is greater than the price charged by Lazy Guys. D) Because Ralph's Recliners sells more output its average fixed costs are lower than Lazy Guys' average fixed costs.
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal. What is the size of the consumer surplus?
A. $4 billion B. $8 billion C. $18 billion D. $6 billion
If MPC = 0.9, equilibrium real GDP is $1,000 . and full-employment real GDP is $2,000 . then how much should government spending change to bring about full employment?
a. +1,000. b. ?100. c. +900. d. +100. e. ?0.9.