A natural monopoly occurs when
A. there are high fixed costs and continuously decreasing average total costs.
B. there are continuously decreasing average total costs.
C. there are high fixed costs.
D. there are continuously increasing marginal costs.
Answer: A
Economics
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The Fed may also lend to insolvent banks, rather than winding them down, in order to:
A. keep financial markets guessing about its strategy. B. address the problem of systemic risk. C. keep the money supply from falling too much. D. secure politically powerful allies.
Economics
To examine how the total production of an economy has changed over time, it would be better to examine
A) real GDP. B) nominal GDP. C) GDP at current prices. D) the GDP deflator.
Economics