A natural monopoly has
a. constant average costs cost over the relevant range of output.
b. economies of scale over the relevant range of output
c. constant returns to scale over the relevant range of output.
d. diseconomies of scale over the relevant range of output.
b
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Economic profit equals gross earnings minus the firm’s direct costs.
Answer the following statement true (T) or false (F)
In a centrally-planned economy, economic activity is guided by ______
Fill in the blank(s) with correct word
The market demand curve in perfect competition is found by
A. the interaction of supply and demand at the individual firm and consumer levels. B. horizontally summing the demand curves of the individual consumers. C. horizontally summing the supply curves of the individual firms in the industry. D. utility maximizing behavior of the "representative consumer."
Average fixed costs rise continuously as quantity of output rises.
Answer the following statement true (T) or false (F)