A natural monopoly is a market where
a. a single firm has control over a vital natural resource.
b. many smaller firms can produce the entire market output at the same per-unit cost as could one large firm.
c. a single large firm can produce the entire market output at a lower per-unit cost than a group of smaller firms.
d. many smaller firms can produce the entire market output at a lower per-unit cost than could one large firm.
C
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If firms in an industry differentiated their products and made economic profits in the short-run, what other characteristic would be important to determine if this is an oligopoly or a monopolistically competitive market?
A) the number of firms in the market B) the number of close substitutes for the good being produced C) the number of buyers in the market D) if the good being sold is a normal or inferior good
In the long run, all factors of production are
A) variable. B) fixed. C) materials. D) rented.