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Economics
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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, the ____.
 
A) firm is a single-price monopoly
B) good that the industry produces has close substitutes
C) firm is a natural monopoly
D) firms are protected from competition by a legal barrier

 

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manhokwe tawanda
manhokwe tawandaLv10
2 Oct 2020
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Related questions

1. Which characteristic led to Microsoft exercising monopoly power?

 

A.copyright protection for the Windows operating system
 

B .no close substitutes
 

C.economies of scale
 

D.government franchise

 

2. The goal of antitrust law is to:

 

A. prevent monopolies and monopoly power from arising.
 

B.protect monopolies from the competition.
 

C. make sure consumers pay high prices.
 

D. preserve allocative inefficiencies of monopolies.

 

3. Which of the following is not a characteristic of a monopoly?

 

A. The market has just one seller.
 

B.There exist significant barriers to entry.
 

C. Substitutes for the monopolist's products are available to buyers.
 

D. No close substitutes exist for the monopolist's products.

 

4. A constantly declining long-run average cost curve is a characteristic of what type of industrial structure:

 

A. Monopoly
 

B. Natural monopoly
 

C. Oligopoly
 

D. Perfect competition

 

5. An industry that has large economies of scale operates most efficiently as a(n):

 

A.competitive industry.
 

B.monopoly
 

C.regulated natural monopoly.
 

D.anarchic industry.

A natural monopoly exists when

a. a monopolist produces a product, the main component of which is natural wood.

b. economies of scale are so large that only one firm can survive and achieve low average total cost in the long run.

c. a firm is the exclusive owner of a key resource necessary to produce the firm's product.

d. there are many close substitutes for a firm's product 

Select the correct answer:

A (legal; natural) monopoly exists when one firm can meet the entire market demand at a lower average total cost than two or more firms could.

A monopoly that is able to sell different units of a good or service for different prices is a (natural-price; price-discriminating) monopoly.

The act of obtaining special treatment by the government to create an economic profit is called (government surplus; rent seeking).

Regulated firms have an incentive to inflate their costs under (rate of return; price cap) regulation.

The U.S. Postal Service has a (natural; legal) monopoly on first class mail delivery.

A (single-price; price discriminating) monopoly maximizes profit by producing the quantity at which marginal revenue equals marginal cost and then charging the maximum price that consumers are willing to pay for that quantity.

The key idea behind price discrimination is to convert (consumer surplus; producer surplus) into economic profit.

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