For a natural monopoly, long-run average costs
A) fall as output increases.
B) rise as output increases.
C) fall as output falls.
D) rise as output falls.
A
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Perishable goods such as milk or fruit are never used as money, because they cannot function as a
A) store of value. B) unit of accounting. C) standard of deferred payment. D) medium of exchange.
In the United States, government policies with respect to monopolies and collusion are embodied in
A) common law, which the United States adopted from English law. B) the Supreme Court. C) antitrust laws. D) the U.S. Constitution.
The first type of labor unions that emerged in the United States were
A) industrial unions. B) craft unions. C) professional unions. D) transportation unions.
Mr. Stewart owns the only hardware store in a small Midwestern town. His nearest competition is more than 50 miles away, yet he does not earn any economic profit. Does someone need to explain the economic concept of monopoly to him?