Sky-High Skywriters charges competitive prices for its skywriting services even though it has no competition. This is most likely because
A. It is a natural monopoly.
B. It operates in a contestable market.
C. It cares more about customers' well-being than its own well-being.
D. There are no economies of scale in this industry.
Answer: B
You might also like to view...
For a given production possibilities frontier, which points are attainable?
A. Points inside the frontier B. Points outside the frontier C. Points on or outside the frontier D. Points on the frontier only E. Points on or inside the frontier
According to the graph shown, if the market price decreases (all else staying the same):
A. producer surplus would increase.
B. producer surplus would decrease.
C. total surplus would increase.
D. quantity would increase.
A short-run production function was estimated asQ = ?0.002L3 + 0.16L2At what level of labor usage does the maximum average product occur?
A. 20 B. 30 C. 40 D. 50 E. 60
If the government imposes an excise tax on cars equal to $5,000 per automobile, the supply of automobiles will shift to the:
A. right and the price of automobiles will decrease by an unknown amount. B. right and the price of automobiles will decrease by $5,000. C. left and the price of automobiles will increase by $5,000. D. left and the price of automobiles will increase by an unknown amount.