Which of the following total cost functions suggests the presence of a natural monopoly?
A) TC = 2Q
B) TC = 100 + 2Q
C) TC = 100 + 2Q2
D) All of the above.
B
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A bank receives a demand deposit of $5,000 . The bank loans out $3,500 of this deposit and increases its excess reserves by $500 . What is the required reserve ratio?
a. 10% b. 20% c. 40% d. 60%
Entry into a monopolistically competitive industry is
a. easy, but exiting is difficult b. difficult, but exiting is easy c. difficult, but not impossible d. impossible e. easier than entry into oligopoly
At the natural rate of unemployment, structural unemployment is zero.
Answer the following statement true (T) or false (F)
The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad. B. stabilizing the exchange rate against external shocks. C. stabilizing the interest rate against foreign capital outflows. D. promoting long term economic growth.