Which of the following is true of a monopoly?
a. The price charged by a monopoly is lower than that in other markets.
b. New firms can enter a monopoly

Refer to Figure 3.4. This is an example of

A) an assurance game. B) a pure coordination game. C) a battle of the sexes game. D) a chicken game.

Average total cost minus average variable cost ________ as output increases because ________ as output increases

A) decreases and then increases; marginal cost initially decreases and then increases B) decreases; average fixed cost decreases C) decreases; marginal returns diminish D) decreases; economies of scale are present