A natural monopoly that is NOT regulated will choose to produce at the
A. point at which marginal revenue equals marginal cost.
B. point at which marginal cost is above average total cost.
C. point at which the demand curve intersects the long-run average cost curve.
D. minimum point of the long-run average cost curve.
Answer: A
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Assume that Sofia's marginal utility from pizza consumption is 10 utils and the price is $2.00 per slice. Further, assume that her marginal utility from scone consumption is 20 utils and the price is $3.00 per scone. Which of the following is true? a. With her existing budget she should increase her consumption of pizza
b. With her existing budget she should increase her consumption of scones. c. She is currently maximizing her utility and should not change the amount of consumption for either good with her current budget. d. If her budget increases, she should increase her consumption of pizza but not scones. e. If her budget increases, she should increase her consumption of scones but not pizza.
In order for the existing workforce to be more productive, there needs to be
A. An increase in human capital. B. A decrease in economic growth. C. A redistribution of income within the nation. D. An increase in population.
Which of the following is an example of investment spending?
a. The Miller Company buys a used van to make deliveries. b. The Rodriguez family buys stock in the Bonanza Corporation. c. Claude invests his holiday bonus in rare comic books. d. The Gregor Bakery Company spends its profits on new ovens.
The following table depicts the cost and demand structure a natural monopoly faces. Provided that the firm operates as a monopolist, what is the price charged and quantity produced in order to maximize profits?
A. price charged of $800 and quantity produced of 2 B. price charged of $900 and quantity produced of 1 C. price charged of $600 and quantity produced of 4 D. price charged of $700 and quantity produced of 3