For a natural monopoly:
A. ATC = MC.
B. ATC > MC.
C. ATC < MC.
D. there is no relationship between ATC and MC.
Answer: B
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A local government would not be efficient in providing which of the following services?
A. International aid B. Police protection C. Fire protection D. Roads
Refer to Figure 5-3. With insurance and a third-party payer system, what price do consumers pay for medical services?
A) $40 B) $55 C) $65 D) > $65
To an economist, all choices have costs
Indicate whether the statement is true or false
The standard cobweb model makes which two assumptions?
A. Workers are forward looking, and job adjustments are instantaneous. B. Workers are forward looking, and job adjustments take time. C. Workers are myopic, and job adjustments are instantaneous. D. Workers are myopic, and retraining of one's skills happens instantaneously. E. Workers are myopic, and job adjustments take time.