Oligopolies have few sellers and difficult entry

Two goods that are substitutes are

a. bacon and eggs b. camera and film c. tennis racket and tennis balls d. movie theater tickets and DVD rentals e. coffee and cream

If a regulatory commission wants to establish a socially optimal price for a natural monopoly, it should select a price:

A. at which the marginal cost curve intersects the demand curve. B. at which marginal revenue is zero. C. at which the average total cost curve intersects the demand curve. D. that corresponds with the equality of marginal cost and marginal revenue.