In the case of a natural monopoly, as the number of firms in the industry increases, the average cost of producing a:
A. fixed number of units stays the same.
B. fixed number of units decreases.
C. variable number of units stays the same.
D. fixed number of units increases.
Answer: D
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In 2003, the WTO ruled that U.S. tariffs on ________ were unfair and allowed retaliatory tariffs on U.S. products.
A. beef imported from Argentina B. steel imported from the EU C. diamonds imported from South Africa D. automobiles imported from Japan
The U.S. Secretary of the Treasury met with the Japanese Finance Minister to discuss possible cuts in the Japanese discount rate. The likely outcome of currency speculation in response to this news is that
a. the dollar will depreciate. b. the dollar will appreciate. c. the yen will appreciate. d. both the dollar and yen will appreciate.