Consider the market for cable television in the figure above. This graph depicts a natural monopoly because the
A) marginal cost curve is constant.
B) demand curve is downward sloping.
C) average cost curve is declining as it crosses the demand curve.
D) marginal revenue curve is downward sloping.
C
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Suppose a cancer patient decides to forsake weekly chemotherapy treatments in order to spend more meaningful, loving time with her friends and family. In cases where patients refuse treatment,
A) there are indeed substitute for chemotherapy, such as time with family. B) the patient is behaving irrationally. C) the patient doesn't know what is in her long-run best interest. D) the patient fails to see that chemotherapy is a better substitute than time with the family.
Suppose the production function is given by Q = 3K + 4L. What is the marginal product of capital when 5 units of capital and 10 units of labor are employed?
A. 11 B. 3 C. 4 D. 45