Customers are most likely buying from a natural monopoly when they purchase
A) aspirin from a generic drug company.
B) a laptop computer from Sony.
C) a glass of water from the local water company.
D) all of the above.
C
You might also like to view...
Which of the following statements best demonstrates the constraints under which individual consumers and society as a whole operate?
a. Only the individual opportunity set (or budget constraint) demonstrates the constraints under which individual consumers and society as a whole operate. b. Only the social production possibilities frontier demonstrates the constraints under which individual consumers and society as a whole operate. c. Neither the individual opportunity set (budget constraint) nor the social production possibilities frontier demonstrates the constraints under which individual consumers and society as a whole operate. d. Both the individual’s opportunity set (and budget constraint) and the social production possibilities frontier show the constraints under which individual consumers and society as a whole operate.
The debt would cease to grow if
A. Interest rates fell. B. Federal expenditures were greater than federal receipts. C. The federal government balanced its budget. D. None of the choices are correct.
The price elasticity of supply measures how:
A. easily labor and capital can be substituted for one another in the production process. B. responsive the quantity supplied of X is to changes in the price of X. C. responsive the quantity supplied of Y is to changes in the price of X. D. responsive quantity supplied is to a change in incomes.
Prices in a market economy perform a rationing function because they reflect
A) the demand of all buyers in the market. B) the extent to which the goods are necessities. C) the strength of the supply curve. D) the relative scarcity of the goods.