A natural oligopoly occurs when
a. few firms can afford to compete in the industry
b. the minimum efficient scale is a large fraction of the market
c. there are a large number of buyers and sellers of a standardized product
d. minimum efficient scale is greater than total market demand at the price equal to minimum long run average total cost
e. competitive pricing drives firms from the market
B
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According to the text, in the absence of uncertainty, no one can obtain a profit from the exclusive ownership of a scarce resource, such as a patent or a franchise, because
A) demand curves will be perfectly elastic. B) marginal cost will equal marginal revenue. C) profit requires active production rather than static ownership. D) the cost of retaining ownership will rise to eliminate any profit. E) the tax on capital gains will eliminate any profit.
A firm's price rises. As a result, the
A) supply of labor to the firm decreases, that is, the labor supply curve shifts leftward. B) supply of labor to the firm increases, that is, the labor supply curve shifts rightward. C) demand for labor by the firm increases, that is, the labor demand curve shifts rightward. D) demand for labor by the firm decreases, that is, the labor demand curve shifts leftward.