Which of the following is necessary for a natural monopoly ?

Related Mcqs:

The monopolist’s supply curve ?

A. does not exist B. is the marginal cost curve above average variable cost? C. is the marginal cost curve above average total cost D. is the upward-sloping portion of the average total cost curve E. The upward-sloping portion of the average variable cost...

The purpose of antitrust (also known as competition) laws is to ?

A. Increase competition in an industry by preventing mergers and breaking up large firms. B. regulate the prices charged by a monopoly C. increase merger activity to help generate synergies that reduce costs and raise efficiency. D. create public ownership of natural monopolies E. all of these answers...

Which of the follow statements about price discrimination is not true ?

A. Perfect price discrimination generates a deadweight loss B. Price discrimination can raise economic welfare. C. price discrimination requires that seller be able to separate buyers according to their willingness to pay. D. Price discrimination increases a monopolist’s profits. E. For a monopolist to engage in price discrimination buyers must be unable to engage in … Which of the follow statements about price discrimination is not true ?Read More...

Using government regulations to force a natural monopoly to charge a price equal to his marginal cost will ?

A. Cause the monopolist to exit the market B. improve efficieny C. raise the price of good D. attract additional firms to enter the market...

If a marginal revenue exceeds marginal cost, a monopolists should?

A. increase should B. decrease output C. keep output the same because profits are maximized when marginal revenue exceeds marginal cost D. raise the price...