Splitting up a natural monopoly into two or more smaller firms would not only lower the average cost of production but also reduce price
a. True
b. False
Indicate whether the statement is true or false
False
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For the following question, assume the following facts:
(1 ) Chase (which is located in the United States) has a 20% reserve requirement imposed by the government. (2 ) Bank of Germany has no reserve requirements. (3 ) Both banks may invest at an 8% interest rate. (4 ) Both banks have fixed costs of $3 per deposit made. What is the difference between the minimum interest rates each bank can offer and still make a profit if the deposit is $500 for 1 year? A) 0 - Both banks can offer the same rate. B) 1% C) 1.6% D) 0.4% E) 20%
Bonds with ________ tend to have higher interest rates than bonds with ________
A) high liquidity; low liquidity B) high default risk; low default risk C) shorter maturity; longer maturity D) low tax burdens on their interest; high tax burdens on their interest
An example of a public good is: a. a pizza
b. milk. c. a delivery truck. d. national defense.
Due to the impact of increasing returns to scale, smaller firms can produce at a lower average total cost than larger firms
a. True b. False Indicate whether the statement is true or false