If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
A) will experience a lower marginal cost.
B) will earn an economic loss.
C) will expand its output.
D) will experience a rise in long-term average costs.
Answer: B
You might also like to view...
A firm sells grapefruit in a perfectly competitive market at a price of $1.50 per pound. The firm's marginal revenue: a. equals $1.50
b. is less than $1.50. c. is greater than $1.50. d. cannot be determined from the information provided.
Higher per capita GNP always means higher quality of life
a. True b. False Indicate whether the statement is true or false
Fixed costs are sometimes referred to as _____ costs because once you've obligated yourself to them, they cannot be recovered.
Fill in the blank(s) with the appropriate word(s).
Using the expenditure approach, calculate the GDP for the United States during a one year period with hypothetical numbers. Be sure that the numbers for each category reflect a realistic proportion.
What will be an ideal response?