Natural monopolies are usually found in industries with
a. low fixed costs.
b. large economies of scale.
c. a normal profit.
d. constant economies of scale.
b. large economies of scale.
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Which of the following correctly defines the term "equilibrium"?
A) It refers to analysis that uses data to arrive at conclusions. B) It refers to a situation where all agents are simultaneously optimizing. C) It refers to an optimizing decision made by an individual economic agent. D) It refers to government intervention that efficiently allocates scarce resources.
For a particular production function, over the range of output where marginal product rises as units of the variable input are added to the fixed input, marginal cost will be:
A) increasing. B) constant. C) decreasing. D) cannot be determined without additional information.
The reserve requirement is 0.10. What is the simple deposit multiplier?
A) 2
B) 20
C) 0.2
D) 10
Jason receives $20,000 per year from the federal government because he is disabled. This is a
A. free rider problem. B. demerit good. C. transfer payment. D. non-rival good.