For a natural monopoly, if price is equal to marginal social cost, then
A) the deadweight loss is as large as possible.
B) the firm makes zero economic profit.
C) there is no deadweight loss.
D) there is no deadweight loss and the firm makes a positive economic profit.
C
Economics
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The marginal cost of a monopolist is constant and is $10. The demand curve and marginal revenue curves are given as follows:
demand: Q = 100 - P marginal revenue: MR = 100 - 2Q The deadweight loss from monopoly power is ________. A) $1000.00 B) $1012.50 C) $1025.00 D) $1037.50 E) none of the above
Economics
When faced with an economic loss, a competitive firm will exit the industry in the long run
a. True b. False Indicate whether the statement is true or false
Economics