A firm is a natural monopoly if ________
A. it can produce the good at a price below its competitor's price
B. it can produce a larger quantity of the good than other firms could
C. the government grants it a public franchise or patent
D. it can satisfy the market demand at a lower average total cost than other firms can
D Answer D is the definition of a natural monopoly.
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The economist George Stigler offered support for the Sherman Act when he said
A) competition can only be preserved by protecting competitors from cutthroat competition. B) conglomerate mergers could not be prevented or regulated if it were not for the Sherman Act's prohibition of combinations in restraint of trade. C) predatory pricing costs businesses more than it saves consumers. D) the ghost of Senator Sherman is an ex officio member of the board of directors of every large company. E) the Sherman Act is essential if the Clayton act is to be enforceable in any way.
Which of the following statements is correct?
A) Arc elasticity of demand is the same as the slope of the demand curve. B) Arc elasticity of demand only applies to a nonlinear demand curve. C) Point elasticity of demand is measured at each point along a demand curve. D) Point elasticity of demand is measured between two adjacent points on a demand curve.
According to the rational expectations school, when monetary policy makers do exactly what is expected of them, their efforts to stimulate the economy will have no effect on employment
a. True b. False Indicate whether the statement is true or false
For production functions with decreasing returns to scale, a proportional increase in output
A. requires a more-than-proportional growth in all inputs. B. exhibits diminishing returns. C. requires proportional growth in all inputs. D. requires a less-than-proportional growth in all inputs.