Left to itself, a natural monopoly will produce
a. nothing
b. the efficient level of output
c. the quantity at which marginal cost equals marginal revenue
d. the quantity at which the marginal cost and demand curves intersect
e. the quantity at which the long-run average total cost and demand curves intersect
C
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The short-run aggregate supply curve is upward sloping because
What will be an ideal response?
Which type of resource will improve through more education and training by workers?
A. physical capital B. human capital C. natural resources D. money
Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.Refer to Scenario 9.10. The cafe's economic profit is
A. break even. B. zero. C. positive. D. negative.
The principle economic cost of growth is
A. higher inflation rates. B. higher interest rates. C. investment in stocks and bonds. D. current consumption sacrificed for capital formation.