A natural monopoly that is not regulated will choose to produce at the
A) minimum point of the long-run average cost curve.
B) point at which marginal cost is above average total cost.
C) point at which the demand curve intersects the long-run average cost curve.
D) point at which marginal revenue equals marginal cost.
D
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Several houses built in a country during a certain year got damaged due to an earthquake. Which of the following is likely to happen due to this damage?
A) The country's GDP will remain unchanged. B) The trade surplus of the country will increase. C) The country's GDP will decrease. D) The trade deficit of the country will increase.
Describe how actual reserves are calculated. Explain the difference between required reserves and excess reserves. How do reserves affect the amount of loans a bank can make?
What will be an ideal response?