Consumers may not experience the benefits of economies of scale because a natural monopoly
A. Increases output beyond efficient levels.
B. Has higher costs with higher output.
C. Engages in marginal cost pricing.
D. Charges prices higher than competitive levels.
Answer: D
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"The number of substitutes available affects the price elasticity of demand for a good. So one way to know if apples and oranges are substitutes for each other is to look at the price elasticity of demand for each." Comment on this assertion
What will be an ideal response?
Columns 1 and 2 make up a portion of a monopolist's production function for a single variable input, labor. Columns 2 and 3 represent the demand function facing the monopolist over this range of output: 
If the monopolist faces a fixed wage rate of $300, how many units of labor will the firm employ?
A. 3 units B. 4 units C. 5 units D. 6 units E. 7 units