Empirical evidence from electric-power-producing firms suggests that the largest electric-power-producing firms are not natural monopolies because
A) the average cost curve for these firms is U-shaped.
B) no electric-power-producing firms are natural monopolies.
C) the largest firms enjoy economies of scale.
D) the designation of natural monopoly can only be bestowed by the government.
A
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A local flower grower grows products in a plot of land which is exceptionally colorful, and is admired by many passersby. There is no way to charge for this in the price of the flowers. We can safely conclude that
a. the florist produces too many flowers. b. the florist produces too few flowers. c. the florist produces the right amount of flowers. d. society pays the socially optimal amount for the flowers.
Use the Application about the price of vanity license plates in Virginia to answer the following question(s).Recall the Application. Because the elasticity of demand for vanity plates is 0.26, then a decrease in the price of vanity plates will:
A. decrease total revenues. B. have no change in the total revenues. C. increase total revenues. D. There is insufficient information to draw a conclusion.
Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that
A) S/NA = (? + gA + gN)K/NA. B) S/NA = (gA + gN)K/NA. C) I/NA = (?)K/NA. D) I = ?K. E) none of the above
Opportunity cost is the value of the next best alternative to a given choice
a. True b. False Indicate whether the statement is true or false