A natural monopolist that sets prices equal to marginal cost will:
A. incur losses.
B. earn zero accounting profits.
C. be inefficient.
D. set a price greater than average total costs.
Answer: A
Economics
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Commercial banks create money by: a. printing currency notes
b. charging processing fees on bank transactions. c. making loans out of excess reserves. d. investing in money market mutual funds.
Economics
Assume that an economy has 1500 workers, each working 2000 hours per year. If the average real output per worker-hour is $20, then total output or real GDP will be:
A. $3 million B. $30 million C. $45 million D. $60 million
Economics