A natural monopoly occurs when
A) one firm owns all the vital resources needed to produce a particular good.
B) economies of scale allow one firm to supply the entire market at the lowest possible cost.
C) a few firms collude to act as a single firm.
D) one firm captures all the consumer surplus.
B
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The substitution effect of a price increase causes a decrease in the quantity of an inferior good demanded
Indicate whether the statement is true or false
The government's budget deficit refers to the:
A. Total amount of debt that the government has incurred over the years B. Difference the nation's amount of exports and its total amount of imports C. Gap between high government spending and its lower tax revenues D. Decrease in the amount of government spending form one year to the next