A natural monopoly, such as the local telephone company, is characterized by
a. a lack of natural competitors
b. low fixed costs and diseconomies of scale
c. economies of scale
d. a lack of government regulation
e. constant costs of production
C
You might also like to view...
The demand curve for the product of a perfectly competitive firm's demand curve indicates that if the firm
A) lowers its price, it can sell more. B) accepts the market-set price, the number of units the firm can sell is limited. C) raises its price, sales will fall to zero. D) changes its price, the quantity demanded will change in the opposite direction.
If marginal utility is negative
A) total utility increases at a decreasing rate. B) the consumer will not consider extra units of the good even if its price is zero. C) the consumer will want to consume the unit only if it is free. D) the consumer likes the commodity, but not as much as he or she once did.