Which of the following is true of a natural monopoly?
a. The quantity supplied in the market is less than the quantity at which the long-run average cost is minimum.
b. The quantity supplied in the market is equal to the quantity at which the long-run average cost is minimum.
c. The firm produces at the minimum point of the marginal cost curve
d. The quantity demanded in the market corresponds to the price at which the marginal revenue and marginal cost curves intersect.
a
Economics
You might also like to view...
When the government sets a price floor which is above the equilibrium price
A) a surplus will develop. B) a shortage will develop. C) the equilibrium price will be maintained. D) a price ceiling will follow.
Economics
In the following situation the tax system is Taxable income $5,000 $10,000 $20,000 Tax payments $500 $600 $1,600
a. progressive b. proportional c. regressive d. based on the benefits received e. there is insufficient information to answer the question
Economics