A natural monopoly is a monopoly that arises from:
A. having an exclusive right to operate in a national park.
B. a firm's natural desire to maximize its profit.
C. having exclusive control over the natural resources used to produce a good.
D. economies of scale.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. The economic model of supply and demand is one that can be tested using data. 2. When an economist talks about equilibrium he is specifically discussing a situation where the quantity supplied equals the quantity demanded. 3. The fact that grocery stores and convenience stores sell physically identical products for different prices is a violation of the "law of one price. 4. In the supply/demand model, prices and quantities are exogenous variables. 5. While the model o'False supply and demand has been around 'Falseor a long time, it has survived more because it mimics reality than because it actually predicts something.
When U.S. official reserves ________, the official settlements account balance becomes negative and when U.S. official reserves ________, the official settlements account balance becomes positive
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease E) More information is needed about the balances on the current account and the capital account in order to answer this question.
When the market price is above equilibrium then ____ and when the market price is below equilibrium, then ____.
A. quantity demanded is greater than quantity supplied; quantity supplied is greater than quantity demanded. B. quantity supplied is greater than quantity demanded; quantity supplied is greater than quantity demanded. C. quantity supplied is greater than quantity demanded; quantity demanded is greater than quantity supplied D. the market is in equilibrium; the market is in equilibrium.
Given the total cost and total revenue curves in the figure above, what is the profit-maximizing output level?
A) 30,000 bushels B) 60,000 bushels C) 80,000 bushels D) All output levels occur between 30,000 and 80,000 bushels are profit-maximizing output levels.