Suppose potatoes were produced in Canada by many, many firms in perfect competition. In Belgium, only one firm produces potatoes for the Belgium market. Suppose as well that for the competitive firms and the monopoly, minimum ATC is the same. We would expect then, that in Belgium the price of potatoes is _____________ and ____________ potatoes are produced and sold than in Canada

An example of a natural monopoly is

A) a house. B) the Internet. C) air traffic control. D) fish in the ocean.

If a firm can borrow or lend at a 6 percent annual interest rate, it will

a. buy more capital if it has the funds on hand than if it has to borrow them b. ignore the market rate of interest when making capital investment decisions c. buy less capital if it has the funds on hand than if it has to borrow them d. ignore the market rate of interest when making saving decisions e. buy the same amount of capital whether it has the funds on hand or has to borrow them