A natural monopoly is characterized by large fixed costs relative to variable costs
Indicate whether the statement is true or false
TRUE
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In the above figure, if the firm increases its output from Q1 to Q2, it will
A) reduce its marginal revenue. B) increase its marginal revenue. C) decrease its profit. D) increase its profit.
The relationship between sales and revenue is
A) a direct relationship. B) independent. C) a negative relationship. D) an inverse relationship.
Which of the following is associated with global poverty?
A. Low infant mortality rates. B. Lack of health care. C. Immunization against preventable diseases. D. Opportunities for education.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 96 ? 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 6Q1 and MC2 = 3Q2. How much output should be produced in plant 2 in order to maximize profits?
A. 4 B. 1 C. 2 D. 3