Refer to the information provided in Figure 13.8 below to answer the question that follows. 
Figure 13.8 Refer to Figure 13.8. The only firm producing electricity has the long-run average total cost curve shown. The total amount of demand for kilowatts is 100,000 per hour. It makes economic sense for this firm to be the only producer of electricity because this firm
A. must have control over a scarce factor of production.
B. must be realizing economies of scale in producing electricity.
C. must have a government franchise to produce electricity.
D. must have a patent on the production process necessary to produce electricity.
Answer: B
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If Egypt has a chronic unfavorable balance of trade, it will eventually lead to
a. the Egyptian government's decision to appreciate its currency (the pound) b. the Egyptian government's decision to devalue its currency (the pound) c. the Egyptian government's policy to create a favorable balance of payments d. the Egyptian government's policy to create a favorable balance on current account e. a negative balance of payments
A single price monopolist has a demand curve: P = 500 - 50Q. It has the total cost curve: TC = 1000 + 100Q. If the firm is a profit maximizer or loss minimizer, what output and price should it plan for?
What will be an ideal response?
Final consumer demand for poultry in the US increases (shifts to the right) if
a) consumer income decreases b) the price of chicken decreases c) the price of beef increases d) the price of pork decreases
The typical average variable cost curve:
A. rises and then falls sharply. B. slopes up and to the right. C. slopes down and to the right. D. is U-shaped.