When a firm experiences declining long-run average total costs as it produces more output, it is known as a(n)
A. natural monopoly.
B. rent seeker.
C. monopolistic competitor.
D. oligopoly.
Answer: A
You might also like to view...
Financial securities that represent partial ownership of a corporation are known as
A) bonds. B) stocks. C) coupons. D) dividends.
Some market conditions make cartels MORE likely to succeed in collusion. Which of the following will make collusion more successful?
a. The products are heterogeneous b. The orders are small and frequent c. The firms are all about the same size d. Costs differ across the firms e. Firms are geographically widely scattered
Show how a monopolist maximizes its profit. Explain your graph.
What will be an ideal response?
When PAE decreases then the economy will move towards:
A. lower levels of equilibrium GDP. B. higher levels of equilibrium GDP. C. constant levels of GDP. D. higher levels of equilibrium aggregate expenditure.