A natural monopoly occurs when
A. there are high fixed costs.
B. continuously decreasing average total costs.
C. continuously increasing marginal costs.
D. A) and B)
Answer: D
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If a country begins to import a good,
a. it has a comparative advantage in producing that good b. it has a comparative advantage in consuming that good c. domestic consumers are made better off d. domestic producers are made better off e. both domestic consumers and domestic producers are harmed
If the value of the marginal product of labor exceeds the wage, then the firm could
a. increase profit by hiring additional labor. b. increase profit by reducing the amount of labor hired. c. increase revenue by lowering output. d. reduce total cost by hiring additional workers.
In the long run there are ________ price level surprises, meaning that the actual price level ________ the anticipated price level
a. no; exceeds b. many; is below c. many; equals d. no; equals
A demand function is Qd = 55 - 3P, when price is €10, quantity demanded is
(a) 10. (b) 25. (c) Zero. (d) We need more information to answer.