Empirical evidence from electric-power-producing firms suggests that
A) all electric-power-producing firms are natural monopolies.
B) no electric-power-producing firms are natural monopolies.
C) the largest electric-power-producing firms are natural monopolies.
D) the smallest electric-power-producing firms are natural monopolies.
D
You might also like to view...
How do markets for insurance use no-claim bonuses to cope with private information?
What will be an ideal response?
Which of the following is not an input to production?
a. Technology b. Labor c. Physical capital d. Producer expectations about future prices
Jack, a music major, is perusing Jill's notes for her economics class, where she has written that "total revenues will rise with price rises only if demand is elastic." Jack tells Jill this is nonsense because firms can always increase their revenues by raising price. How should Jill respond?
Katie wins $3 million in her state's lottery. If Katie drastically reduces the number of hours she works after she wins the money, we can infer that the income effect is larger than the substitution effect for her
a. True b. False Indicate whether the statement is true or false