A firm is likely to be a natural monopoly:
A. when the demand for its product or service is inelastic.
B. if it is producing an inferior good.
C. if economies of scale are experienced over the full range of output.
D. because government grants it an exclusive franchise.
Answer: C
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Marginal revenue product measures the
A. increase in total revenue resulting from the production of one more unit of a product. B. increase in total resource cost resulting from the hire of one extra unit of a resource. C. amount by which the extra production of one more worker increases a firm's total revenue. D. decline in product price that a firm must accept to sell the extra output of one more worker.
A country's unemployment rate fell from 6% to 5% during a year. If its total population, capital stock and output remain unchanged, ________
A) its income per worker will increase B) its income per capita will increase C) its income per worker will fall D) its income per capita will fall
Regressional analysis that analyzes the relationship between one dependent variable and one independent variable is called:
A) simple regression analysis. B) correlation analysis C) multiple regression analysis. D) cluster analysis.
If Jenny’s taxes are $10,000 when she earns $50,000 and $12,000 when she earns $60,000, then
A. Jenny faces a progressive tax. B. Jenny faces a regressive tax. C. Jenny faces a proportional tax. D. Jenny faces a rising marginal tax rate.