To be a natural monopoly, a firm must
A. control an essential natural resource input.
B. be very large.
C. have a continuously falling average cost curve as output rises.
D. have falling average costs over a substantial range of total market demand.
Answer: D
You might also like to view...
Most industrialized nations today use a gold standard to establish exchange rates
a. True b. False Indicate whether the statement is true or false
Cartel models are most like
a. duopoly b. monopoly c. kinked demand d. monopolistic competition e. price leadership
Some economists advocate government intervention in a market economy
A. when resource costs for a private producer do not reflect the full cost to society. B. to stabilize the economy. C. to produce collective goods and services. D. all of the above.
If a country that fixes its exchange rate has an undervalued exchange rate, then it will ________ reserves, unless it ________ its money supply to the appropriate level.
A. gain; increases B. lose; increases C. gain; decreases D. lose; decreases