Which of the following statements about natural monopolies is true?
A) Natural monopolies are only found in the markets for natural resources (like crude oil and coal).
B) For natural monopolies, marginal cost is always below average cost.
C) For natural monopolies, average cost is always increasing.
D) Natural monopolies cannot be regulated.
B
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Optimal decisions take into account
A. the resources available. B. the alternatives that were not available to choose. C. the gratification produced by an outcome. D. the effect on the distribution of income. E. the outcomes that are not feasible.
Describe traditional knowledge and how it relates to current trade issues about intellectual property rights protection
What will be an ideal response?
Assume the LRAC curve for a particular industry hits its minimum point at a relatively low level of output and then increases, and the demand for industry output is quite large
In this case, consideration of the minimum efficient scale of operation suggest that the market should be served by: A) a large number of small firms to minimize production costs. B) a small number of large firms to minimize production costs C) a large number of large firms to minimize production costs. D) an indeterminate number of firms of indeterminate size to minimize production costs.
Refer to the above figure. Which one of the following statements is TRUE with regard to the economy depicted in the graph?
A) Point C cannot be produced. B) The best production point is 500 loaves of bread and 50 bales of wool. C) The total amount of resources it takes to produce 20 bales of wool and 500 loaves of bread is more than the amount of resources needed to produce 50 bales of wool and 250 loaves of bread. D) The total amount of resources it takes to produce 20 bales of wool and 500 loaves of bread is the same as the amount of resources needed to produce 50 bales of wool and 250 loaves of bread.