An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called a(n) ________ monopoly.
A. economies of scale
B. patent
C. fixed cost
D. natural
Answer: D
You might also like to view...
People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money is
A) extremely liquid. B) a unique good for which there are no substitutes. C) the only thing accepted in economic exchange. D) backed by gold.
A 3 percent increase in the price of cotton leads to a 6 percent decrease in the quantity demanded of cotton. The absolute price elasticity of demand is
A) 3. B) 2. C) 0.5. D) 0.33.
The long-run equilibrium price-output combination for a monopolist is economically inefficient because:
a. it does not operate on the minimum point of its marginal-cost curve. b. it does not produce the level of output at which price equals marginal cost. c. consumer surplus is maximized but not producer surplus. d. producer surplus is maximized but not consumer surplus. e. it operates on the downward sloping portion of the average-total-cost curve.
The absolute price elasticity of demand for a product for which annual expenditures make up a very small share of a typical consumer's budget is probably
A. less than 1. B. equal to 1. C. infinity. D. greater than 1.