Which of the following is true of a natural monopoly?
a. The quantity supplied in the market is less than the quantity at which the long-run average cost is minimum.
b. The quantity supplied in the market is equal to the quantity at which the long-run average cost is minimum.
c. The firm produces at the minimum point of the marginal cost curve
d. The quantity demanded in the market corresponds to the price at which the marginal revenue and marginal cost curves intersect.
a
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The above table shows some cost data for Tracey's Tents. What is the average total cost when output is 3?
A) $120 B) $30 C) $40 D) $50
Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers, and both groups of workers initially earn the perfectly competitive wage
What happens to the equilibrium employment level and wage for union workers if the union exercises its bargaining power? A) Both increase. B) Employment increases and wage declines. C) Wage increases and employment declines. D) Both decline.
Other things the same, a decrease in the real interest rate
a. increases the quantity of loanable funds demanded. b. shifts the demand for loanable funds curve to the right. c. decreases the quantity of loanable funds demanded. d. shifts the demand for loanable funds curve to the left.
An increase in the demand for peanuts due to changes in consumer tastes, accompanied by an increase in the supply of peanuts as a result of favorable growing conditions, will result in
A) an increase in the equilibrium quantity of peanuts and no change in the equilibrium price. B) an increase in the equilibrium price of peanuts and no change in the equilibrium quantity. C) an increase in the equilibrium price of peanuts; the equilibrium quantity may increase or decrease. D) an increase in the equilibrium quantity of peanuts; the equilibrium price may increase or decrease.