A natural monopoly, left to itself,
a. will take over other industries
b. will produce the quantity that minimizes long-run average total cost
c. will produce the quantity that minimizes marginal cost
d. will produce an inefficient level of output
e. will charge an inefficiently low price
D
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The fiscal shock in Germany due to reunification caused the Bundesbank to pursue a monetary policy that:
A) was appropriate for Britain, since it had experienced a similar shock. B) was appropriate for all the other ERM nations but not Britain. C) was appropriate only for Germany, since neither Britain nor other ERM nations experienced a similar shock. D) had poor timing, since the monetary action should have come before the reunification.
In an unregulated competitive market, the presence of marginal external cost of a good or service results in overproduction
Indicate whether the statement is true or false