An industry is said to be a natural monopoly when
a. legal barriers limit entry into the market.
b. diseconomies of scale are present in the market.
c. the market demand for the product supplied by a firm is inelastic.
d. long-run ATC continues to decline as firm size increases.
e. larger firms have higher per-unit costs than their smaller rivals.
D
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If the minimum efficient scale in the production of rubber exceeds the quantity of rubber any individual tire producer buys,
a. tire producers should integrate backward into rubber production b. there will be a monopoly in rubber production c. tire producers should not integrate backward into rubber production d. tire producers will be charged prices above what the cost of producing rubber themselves would be e. tire companies will switch to fiberglass
Referring to Table 4.1, Box A should be filled withÂ
A. $200. B. $0. C. $10. D. $100.