The firm shown in the figure above is
A) a natural monopoly because its LRAC curve slopes downward where it intersects the demand curve.
B) not a natural monopoly because its LRAC curve slopes downward where it intersects the demand curve.
C) not a natural monopoly because its MC curve is horizontal.
D) not a natural monopoly because its MC curve is below its LRAC curve.
A
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Everything else held constant, in the market for reserves, decreases in the interest rate paid on excess reserves affect the federal funds rate
A) when the funds rate is below the interest rate paid on excess reserves. B) when the funds rate equals the interest rate paid on excess reserves. C) when the funds rate is below the discount rate. D) when the funds rate equals the discount rate.
In the real business cycle model, output and employment are
a. determined by real supply-side variables. b. determined by supply and demand factors. c. always at their natural rates. d. both a and c. e. None of the above