Because unregulated natural monopolies earn economic profits greater than zero in the long run, but cannot attract new entrants into the industry:
A. government agencies often regulate the number of firms that compete against natural monopolies.
B. government agencies often regulate the price natural monopolies can charge.
C. natural monopolies often go out of business.
D. natural monopolies are outlawed.
Answer: B
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Growth in real GDP per hour worked in the United States was slowest during what period of time?
A) 1900-1949 B) 1950-1973 C) 1974-1995 D) 2006-2014
Which of the following is not an example of a barrier to entry?
a. Mighty Mitch's Mining Company owns a unique plot of land in Tanzania, under which lies the only large deposit of Tanzanite in the world. b. A pharmaceutical company obtains a patent for a specific high blood pressure medication. c. A musician obtains a copyright for her original song. d. An entrepreneur opens a popular new restaurant.
The income effect of a price change is depicted by
a. a parallel shift of the budget constraint at the old set of prices. b. a parallel shift of the budget constraint at the new set of prices. c. a movement along the budget constraint holding the level of satisfaction constant. d. not observable and is therefore neither a shift nor a change in the slope of the budget constraint.
Selection bias is unique to the field of economic research.
Answer the following statement true (T) or false (F)