A natural monopoly is a market in which a single firm:
A. owns a key resource or input into the production of the good.
B. can produce the entire market quantity at a lower cost than multiple firms.
C. is protected from competition through government legislation.
D. gains market share over time through aggressive tactics.
B. can produce the entire market quantity at a lower cost than multiple firms.
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If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. the consumer surplus is greater than in a competitive equilibrium. B. the price is set inefficiently high. C. the price is set below the competitive equilibrium price. D. the market is efficient.
If the quantity of bread demanded rises 2 percent when the price of bread declines 10 percent, then the price elasticity of demand is:
a. 10 b. Cannot be determined. c. 2 d. 0.2 e. 1
The __________________is the sum of the fixed and variable costs.
Fill in the blank(s) with the appropriate word(s).
State and local taxes seem as a group to be mildly ________ and federal taxes seem as a group to be mildly ________.
A. progressive; progressive B. progressive; regressive C. regressive; regressive D. regressive; progressive