A natural monopoly exists if:
a. several former competitors merge to become the only producer in the industry
b. average cost of production is lowest when only one firm produces the entire industry output.
c. one firm controls the supply of an essential input used by the industry.
d. a firm has a patent or copyright.
b
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Which of the following statements is true about revenue?
A) Revenue is calculated by dividing the price per unit by the number of units sold. B) The terms "revenue" and "profit" can be used interchangeably. C) A firm's revenue will increase as its costs increase. D) Revenue is the total amount received for selling a good or service.
The reward that lenders of loanable funds receive for delaying consumption and supplying loanable funds to the loanable funds market is called the
a. marginal factor cost b. loanable funds c. wage-related rent d. interest rate e. marginal revenue product
In a perfectly competitive market, if P > ATC in the short run, there is apt to be
A. an inward shift in the industry supply curve. B. an accounting loss for existing firms. C. entry of new firms into the market. D. an upward pressure on price.
Restrictions on the movement of prices, even if well-intentioned
A) Interfere with price signals, creating surpluses or shortages B) Helped spur gasoline production in the U.S. in the 1970s C) Were rarely if ever used before the 1970s D) Promote innovation through the protection of key industries