Setting price equal to marginal cost in a natural monopoly will lead to
a. excess profits for the firm.
b. losses for the firm.
c. zero profits for the firm.
d. One cannot tell without further information.
b
Economics
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About what percentage of bank assets is made up of cash items in 2012?
A) 8% B) 20% C) 37% D) 50%
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Which of the following is true for a firm that is a monopolist?
a. the firm will make an economic profit in the short run. b. the firm will produce a smaller quantity of output than what would be best from the viewpoint of ideal economic efficiency. c. the additional revenue that can be generated from an increase in output will exceed the firm's price. d. the firm can charge whatever it wants for its product since consumers have no alternatives.
Economics