If economies of scale allow one cable TV firm to supply the entire market at the lowest possible cost, then this company is
A) a natural monopoly.
B) not a monopoly.
C) a monopoly, but not a natural monopoly.
D) a legal monopoly.
A
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Which of the following is true about land rent? a. It is the difference between the payment for using land in production and the cost of such use
b. When the supply curve of land is horizontal, the position of the demand determines rent. c. It is a cost to landowners who rent the use of land. d. When the supply curve of land is vertical, the supply curve determines rent. e. When the supply curve of land is downward sloping, both the demand and supply curves determine rent.
One economically valid approach to regulation is simply to break all large firms into many smaller ones
a. True b. False Indicate whether the statement is true or false
A country can have a comparative advantage in the production of a good, even if it does not have an absolute advantage in the production of that good
a. True b. False Indicate whether the statement is true or false
From an economic perspective, when a student decides to go to the movies instead of studying for a test, it indicates that in the student's thinking the marginal:
A. Benefit of studying is greater than the marginal cost of studying B. Cost of going to the movies is less than the marginal benefit of going to the movies C. Benefit of studying are greater than the marginal benefit of going to the movies D. Cost of going to the movies is greater than the marginal cost of studying