A firm that is a natural monopoly
A) can supply the entire market at a lower average total cost than two or more firms.
B) has very small fixed costs and very large marginal costs.
C) is infrequently regulated because having one firm serve the market is economically sound.
D) cannot make an economic profit if it is not regulated because it must serve a very large customer base.
E) produces the efficient quantity of output when it is not regulated.
A
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The total product is 10 units. The average total cost is $30 and the average fixed cost is $10. What is the amount of the total variable cost?
A) $20 B) $200 C) $300 D) $10 E) It is impossible to determine with the information given.
Pick the economic variable that is countercyclical
a. Government transfer payments b. Prices c. Consumption d. Nominal interest rates e. All of the above are countercyclical variables