In a natural monopoly, and in platform monopolies that have natural monopoly elements, the average cost:
A. increases with additional production.
B. remains constant with additional production.
C. vacillates up and down with additional production.
D. decreases with additional production.
Answer: D
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As a result of importing a good, domestic consumers ________ the quantity consumed and the price of the good ________
A) increase; rises B) decrease; rises C) decrease; falls D) increase; does not change E) increase; falls
If a union is successful in negotiating a wage rate which is above the market clearing wage, then which of the following would not occur?
A) The higher wages attract more workers leading to a shortage of jobs. B) Management may replace part of the workforce with machinery. C) To handle the surplus of labor the union will form a closed shop. D) The union may shift the supply of labor curve by developing methods to ration jobs.
The opportunity cost of a decision is the value of all of the available alternatives that were not chosen
a. True b. False Indicate whether the statement is true or false
Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K and N each increase by 5 percent, and A is unchanged, by how much does Y increase?
A. 15% B. 5% C. 20% D. 10%