A likely consequence over time of an average-cost pricing policy for a natural monopoly is:
A. an increase in the average cost curve.
B. an increase in profits.
C. no change in price.
D. a decrease in the average cost curve.
Answer: A
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There are several types of barriers to entry that can create a monopoly. Which of the following barriers is the result of government action?
A) public franchise B) control of a key resource C) economies of scale D) network externalities
The colonies traded internationally with regions other than the United Kingdom. They included all except
(a) Africa (b) China (c) West Indies (d) Southern Europe
The ________ elastic a firm's demand curve, the greater its ________
A) less; monopoly power B) less; output C) more; monopoly power D) more; costs
An increase in the price of a good normally increases the
a. demand for its substitutes b. supply of complements for the good c. purchasing power of consumers' dollar incomes d. money income of the consumer e. quantity demanded of all goods that are unrelated to the good in question