Which of the following is a characteristic of a natural monopoly?
a. Average cost exceeds marginal cost over large regions of output.
b. Increasing the number of firms increases each firm's average total cost.
c. One firm can supply output at a lower cost than two firms.
d. All of the above are correct.
d
Economics
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Refer to Figure 24-3. Suppose the economy is at point A. If government spending increases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
Economics
Exhibit 8-9 Investment expenditures
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In Exhibit 8-9, which of the following could cause the shift from I1 to I2?
A. lower money holdings B. lower interest rates C. expectations of a future economic slow-down D. lower disposable income
Economics