A natural monopoly
a. typically arises because of a patent or copyright
b. is a firm that, due to economies of scale, can serve a market at lower average cost than two or more firm could
c. is a Pareto improvement as compared to a perfectly competitive market
d. enjoys diseconomies of scale, so average total cost falls as more output is produced
e. enjoys economies of scale, so average total cost rises as more output is produced
B
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A good may be inferior at some income levels and normal at others
Indicate whether the statement is true or false
Other things being equal, a decrease in the workplace amenities, such as decreased health care and less generous vacation options, would tend to shift the labor supply curve to the ____, thereby causing the market wages to ____
a. right; fall b. right; increase c. left; fall d. left; rise