For a natural monopoly to exist
A) a firm must continually buy up its rivals.
B) a firm must have a government-imposed barrier.
C) a firm's long-run average cost curve must exhibit diseconomies of scale beyond the economically efficient output level.
D) a firm's long-run average cost curve must exhibit economies of scale throughout the relevant range of market demand.
D
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Which of the following best characterizes the profit of a buyer of a futures contract?
A) spot price at settlement minus futures price at purchase B) futures price at settlement minus spot price at purchase C) futures price at purchase minus spot price at settlement D) spot price at purchase minus futures price at settlement
The exiting of firms from a perfectly competitive industry occurs when
A) opportunity costs cannot be covered. B) P = ATC. C) accounting profit is less than economic profit. D) MR equals MC.