A natural monopoly that is not regulated will choose to produce at the
A) minimum point of the long-run average cost curve.
B) point at which marginal cost is above average total cost.
C) point at which the demand curve intersects the long-run average cost curve.
D) point at which marginal revenue equals marginal cost.
D
You might also like to view...
A basic tenet of the theory of the firm is that the firm's primary objective is to
A) stay out of debt. B) produce a given level of output at a specified cost. C) maximize economic profits. D) operate for the benefit of society.
Which of the following will occur if a natural monopoly is broken into two smaller firms?
A. The price will drop. B. Industry output will increase. C. Production costs will increase. D. Industry output will decrease.
The CARD Act, which tells credit card holders how long it will take to pay off their debt if they only make minimum payments, and how much they need to pay in order to pay off the debt in three years, is an example of:
A. disclosing information in more usable ways. B. choice architecture that nudges people toward better decisions. C. how the presentation of information can affect people's choices. D. All of these statements are true.
In the long run, an increase in aggregate demand will lead to
A. A higher price level and an increase in real GDP. B. A decrease in real GDP. C. A higher price level only. D. An increase in real GDP only.