Which of the following is a characteristic of a natural monopoly?

a. Fixed costs are typically a small portion of total costs.
b. Average total cost declines over large regions of output.
c. The product sold is a natural resource such as diamonds or water.
d. All of the above are correct.


b

Economics

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In the figure above, the Lorenz curve that shows the least inequality, but NOT perfect equality, is

A) curve A. B) curve B. C) curve C. D) curve D.

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The total amount of output producers are willing and able to produce at alternative price levels in a given time period is known as:

A. Aggregate demand. B. Aggregate supply. C. Real GDP. D. Macro equilibrium.

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Refer to Figure 21.3. The best estimate of where diminishing marginal returns begin is at an output level of

A. 10. B. 40. C. 20. D. 30.

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Using real GDP on the horizontal axis instead of real disposable income implies that a marginal propensity to consume 0.6 generates for every additional $100 of real GDP, there is

A. $40 of additional saving and taxes. B. $40 of additional consumption spending. C. $4 of additional saving. D. $60 of additional real disposable income.

Economics