A natural monopoly:
A. has an average total cost curve that reaches minimum at a low level of output.
B. occurs when a single firm can supply the entire market demand for a product at a lower average total cost than would be possible if two or more firms supplied the market.
C. is usually subject to antitrust suits.
D. is usually allowed to choose its price so as to maximize profits in the United States.
Answer: B
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A shortage occurs in a market when:
A) supply exceeds demand. B) price is lower than the equilibrium price. C) price is higher than the equilibrium price. D) the marginal utility of consumption is negligible.
Consistent with the mercantilist theory, the colonies had
(a) a trade deficit with England. (b) a trade surplus with England. (c) a balance of trade with England. (d) about an equal number of annual trade deficits and surpluses over the years.
About 1.7 percent of elementary and secondary students were educated at home in 1999
a. True b. False
Whereas prior to 1980 only banks create money, today because of _____ all depository institutions with checkable deposits are involved in the process of money creation.
A. the Federal Reserve Act B. the FDIC C. the Depository Institutions Deregulation and Monetary Control Act of 1980 D. the Fiscal Responsibility Act of 1980