The first firm in an industry
A. may make an economic profit.
B. will make a loss so large that it wants to shutdown.
C. will always make an economic profit.
D. will make a loss but want to stay in business.
Answer: A
Economics
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When an average cost pricing rule is imposed on a natural monopoly, ________
A) total surplus is maximized and the monopoly incurs an economic loss B) the monopoly makes zero economic profit C) the monopoly makes an economic profit D) total surplus is maximized and the monopoly makes an economic profit
Economics
The change in consumption divided by a change in income is called the
a. consumption function b. marginal propensity to consume c. marginal propensity to spend d. spending function e. changing propensity to consume
Economics