When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,
A. firm is a single-price monopoly
B. firm is well protected from competition by a legal barrier
C. the firm is a natural monopoly
D. there are close substitutes for the good the firm produces
Answer: C. the firm is a natural monopoly
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A(n) __________ in exports by the United States results in a(n) __________ in the supply of foreign exchange
A) increase; increase B) decrease; increase C) increase; decrease D) None of the above.
Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run
A) output per capita will be greater in B than in A. B) output per capita will be greater in A than in B. C) economic growth will be higher in A than in B. D) more information is needed to answer this question.