A depression is

Employing an additional 1 billion hours of labor increases real GDP by $12 billion. Employing another 1 billion hours beyond the first 1 billion increases real GDP by $11 billion

Hence we can conclude from this information that as employment increases, real GDP A) increases at an increasing rate. B) decreases at an increasing rate. C) decreases at a decreasing rate. D) increases at a decreasing rate. E) falls from $12 billion to $11 billion as more workers are hired.

We know that the firm shown in the figure above is a natural monopoly because as output increases, the

A) marginal cost is constant. B) demand curve slopes downward. C) marginal revenue curve lies below its demand curve. D) average total cost decreases so that the firm can supply the market at lower cost than two firms.