A natural monopoly occurs when
a. patents protect a firm from competition
b. copyrights protect a firm from competition
c. advertising costs exceed fixed costs
d. marginal cost exceeds marginal revenue
e. average costs decrease over the whole range of market output
E
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Assume Amanda always maximizes her total utility given her budget constraint. Every morning for breakfast she has two eggs and three sausages. If the marginal utility of the last egg is 10 utils and the price of eggs is $1 each, what can we say about the marginal utility of the last sausage if the price of each sausage is $2?
A. It must be equal to 20 utils. B. It must be equal to 5 utils. C. It must be equal to 1 utils. D. It must be equal to 10 utils.
Regulation that is based on allowing prices to reflect only the actual operating cost of production is known as
A) average cost regulation. B) marginal cost regulation. C) rate-of-return regulation. D) cost-of-service regulation.
The graph shown demonstrates a tax on sellers. How many fewer units are being sold due to the imposition of a tax on this market?
A. 37 B. 31 C. 15 D. 16
The market for high-end cars is likely to be a(n) ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly