A natural monopoly
A. Has high marginal costs.
B. Has low barriers to entry.
C. Will charge high prices if unregulated.
D. Charges a lower price than a competitive firm.
Answer: C
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The problem of vesting and funding are avoided by __________ pension plans
A) both defined benefit and defined contribution B) defined benefit C) defined contribution D) neither defined benefit nor defined contribution
Refer to the above table. If opportunity costs are constant and the two countries trade
A) the United States should specialize in computers and Mexico in bicycles. B) the United States should specialize in bicycles and Mexico in computers. C) the United States should specialize in both bicycles and computers, and Mexico should specialize in neither. D) there will be no trade because they are so different.
Social Security payments were:
A. originally adjusted for inflation, causing the real value to retirees to decrease over time. B. originally adjusted for inflation, causing the real value to retirees to increase over time. C. not originally adjusted for inflation, causing the real value to retirees to increase over time. D. not originally adjusted for inflation, causing the real value to retirees to decrease over time.
Within the financial services industry, which of the following is an example of a financial institution?
A. Pension funds B. Thrifts C. Insurance companies D. All of these