Refer to Figure 15-1. Which of the following statements about the firm depicted in the diagram is true?
A) The fact that this firm is a natural monopoly is shown by the long-run average total cost curve still falling when it crosses the demand curve.
B) The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises.
C) The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximizes its profits.
D) The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises.
A
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Net exports of goods and services equal the
A) exports of goods and services divided by the imports of goods and services. B) exports of goods and services plus the imports of goods and services. C) exports of goods and services minus the imports of goods and services. D) imports of goods and services minus the exports of goods and services.
A study found that privately-operated juvenile correction facilities in Florida had __________ costs but experienced __________ rates of recidivism than state-operated juvenile corrections facilities
a. lower, higher b. lower, lower c. higher, equivalent d. higher, lower e. lower, equivalent
Firms would not exist if
A) contracts were incomplete. B) residual income equaled normal profit. C) income was spontaneously earned. D) contracts were complete.
Within the Keynesian model, the multiplier effect tends to
a. smooth out the up- and down- swings of the business cycle. b. promote price stability. c. magnify small changes in spending into much larger changes in output and employment. d. reduce the impact of an increase in investment on output and employment.