What does the negative slope of the utilities possibilities frontier imply?
A) Diminishing marginal utility.
B) The only way to increase one person's utility is to decrease another person's utility.
C) Diminishing marginal rates of substitution.
D) The only way to increase output of one good is to decrease output of another.
B
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A natural monopoly
a. typically arises because of a patent or copyright b. is a firm that, due to economies of scale, can serve a market at lower average cost than two or more firm could c. is a Pareto improvement as compared to a perfectly competitive market d. enjoys diseconomies of scale, so average total cost falls as more output is produced e. enjoys economies of scale, so average total cost rises as more output is produced
The mass affordability of the iPhone is the result of the following, except
A) the law of diminishing returns in manufacturing. B) mass production and spreading of fixed costs. C) economies of scale and large volumes. D) mass sales and distribution cost savings.