A natural monopoly exists when a single seller experiences ____________ average total costs than any potential competitor.
a. higher
b. lower
c. equal
d. sometimes higher and sometimes lower
b. lower
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If, when the price falls, total revenue increases, demand is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) None of the above answers is correct because total revenue always decreases when the price of the good falls.
Which Federal Reserve Bank now regularly tracks target levels for the federal funds rate predicted by a basic Taylor-rule equation?
A) Boston B) Chicago C) New York D) St. Louis
Suppose an economy is initially in equilibrium and there is a sudden increase in oil prices. Which of the following is the most likely result?
a. Growth in real GDP b. Price stability c. Full employment output d. Stagflation e. Deflation
What is the leverage implied by the bank balance sheet listed below? ? Assets ? ? Liabilities & Net Worth ? Reserves $19,000,000 ? Checking Deposits $20,000,000 Loans Outstanding $2,000,000 ? ? ? Total $21,000,000 ? Net Worth ? ? ? ? Stockholders’ Equity $1,000,000 ? ? ? Total $21,000,000
A. 10-to-1 B. 12-to-1 C. 20-to-1 D. 21-to-1