Average cost pricing is permitted
A. when a service is produced by a natural monopoly.
B. when few firms have the incentive to provide a service.
C. in price-taking markets.
D. when firms exhibit diseconomies of scale.
Answer: A
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Kenya owns a lawn mowing company. His total product schedule is in the above table. Decreasing marginal returns first occur with the
A) first worker. B) second worker. C) third worker. D) fourth worker. E) fifth worker.
Different nations answer the what, how, and for whom questions differently. China, for instance, builds dams using many workers and only a little capital equipment. The United States builds dams using a few workers and a lot of capital equipment
Which economic question are these two nations answering and why do the answers differ?
The Apple iPhone is sold in a box labeled "Made in China," but a study by economists at the Asian Development Bank found that the actual percentage of the price of the iPhone accounted for by the only work done in China, which is assembly, is
A) 4 percent. B) 12 percent. C) 25 percent. D) 65 percent.
Suppose a Middle Eastern firm moves its final assembly line to Germany and then ships the final products to other members of the EU trading bloc. This is an example of
A) trade diversion. B) trade deflection. C) trade restriction. D) trade detection.