Natural monopolies are usually found in industries with
a. low fixed costs.
b. large economies of scale.
c. a normal profit.
d. constant economies of scale.
b. large economies of scale.
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When comparing the market price of an input in a market characterized by bilateral monopoly to a perfectly competitive price
A) the bilateral monopoly price is always higher than the competitive price. B) there is no difference; the bilateral monopoly price equals the competitive price. C) the bilateral monopoly price is always less than the competitive price. D) the bilateral monopoly price can be higher than, lower than, or equal to the competitive price.
Which of the following will cause consumption, and as a result, aggregate demand, to decrease?
a. a tax cut b. a decrease in consumer confidence c. increased population d. an optimistic forecast of future income growth