A natural monopoly arises when
a. there are constant returns to scale over the relevant range of output.
b. there are economies of scale over the relevant range of output.
c. one firm owns a key natural resource.
d. the government gives a single firm the exclusive right to produce a particular good or service.
b
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The long-run Phillips curve is
A) vertical. B) horizontal. C) upward sloping. D) downward sloping.
With regards to an investment project, which of the following is TRUE?
A) A risk-neutral individual is more likely to invest than a risk-averse individual. B) A risk-neutral individual is more likely to invest than a risk-loving individual. C) A risk-neutral individual is less likely to invest than a risk-averse individual. D) Not enough information is given.
An economic forecast:
a. will always be true. b. is more reliable than a weather forecast. c. will never provide valuable information. d. should not be relied upon to predict economic events. e. is always based upon a Ceteris paribus condition.
If Congress fails to pass a budget before the fiscal year starts, then federal agencies may continue to operate only if Congress has passed a:
a. balanced budget amendment. b. deficit reduction plan. c. conference resolution. d. continuing resolution.