When a single firm has control over the market supply of a resource that is essential to the production of a good,
a. economies of scale are usually important.
b. monopoly is frequently the result.
c. diseconomies of scale are the usual cause.
d. competition for the resource makes monopoly almost impossible
B
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How do economic growth rates affect a nation's standard of living?
What will be an ideal response?
Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the capital stock is
A) constant. B) growing at a rate of gA. C) growing at a rate of gN. D) growing at a rate of gA + gN. E) none of the above
Which of the following is not a characteristic of long-run equilibrium in a monopolistically competitive market?
A) Selling price equals average total cost. B) Production is at minimum average total cost. C) Marginal revenue equals marginal cost. D) Selling price is greater than marginal cost.
When DVD players start becoming obsolete then, to potential thieves, the:
A. Marginal utility of stealing them increases B. Marginal utility of stealing them decreases C. Marginal cost of stealing them increases D. Marginal cost of stealing them decreases