What three conditions must be present for a natural monopoly to exist?
a. one supplier, no close substitutes, barriers for entry
b. multiple suppliers, many close substitutes, no barriers for entry
c. one supplier, many close substitutes, few barriers for entry
d. few suppliers, no close substitutes, no barriers for entry
a. one supplier, no close substitutes, barriers for entry
You might also like to view...
Ben's Peanut Shoppe suffers a short-run loss. Ben will not choose to shut down if
A) his Shoppe's total revenue exceeds his capital costs. B) his Shoppe's total revenue exceeds his implicit costs. C) his Shoppe's total revenue exceeds his fixed cost. D) his Shoppe's total revenue exceeds his variable cost.
Compared to a perfectly competitive firm, in a long run the monopolistically competitive firm will have
A) a lower price. B) a lower average cost. C) a horizontal demand function. D) a lower rate of output.
Perfectly competitive markets:
A. tend to have relatively few sellers. B. are more of an idealized model economists use than a real-life occurrence. C. tend to have relatively few buyers. D. are the most common type of market in the United States.
If August futures for a commodity are currently trading at $9.30/bu, and you expect the basis in July to be $0.25/bu under the August futures, then you expect the July cash price to be:
A. $9.05/bushel under August B. $9.55/bushel over August C. $9.05/bushel D. $9.55/bushel