A natural monopoly arises in an industry in which the per-unit cost of production is:
a. lowest when there are a large number of producers in the industry.
b. lower for the smaller firms than for larger firms
c. minimized at the output where the industry's profit is maximum.
d. lowest when a single firm produces the entire output of the industry.
d
You might also like to view...
The production possibilities curve in Figure 2.1 illustrates the notion of
A) opportunity cost. B) increased factory goods production. C) diminishing resources. D) increased farm produce production.
If a firm that uses a production process that yields economies of scale charges a price equal to ________, then profit will be ________
A) marginal cost; negative B) marginal revenue; maximized C) marginal cost; maximized D) marginal revenue; positive E) marginal cost; positive
A sub-discipline of economics that looks at the economy as a whole is:
a. macroeconomics. b. microeconomics. c. positive economics. d. normative economics. e. impossible to model.
Whom does the Bureau of Labor Statistics include in the "discouraged workers" group?
a. All those between 16 and 65 who are neither disabled nor in an institution and are also neither employed nor seeking employment. b. Civilian labor force members who have chosen early retirement because they dislike their work or think the pay is too low. c. Members of the noninstitutional population who say they want to be employed but aren't searching for a job. d. Members of the civilian labor force who are looking for a job but cannot find one. e. Anyone in the population who is not working.