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2goodgabe 2goodgabe
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Posts: 594
Rep: 1 0
6 years ago
Suppose a firm is a natural monopoly. Then, until the long-run average cost curve crosses the demand curve, as the quantity increases the long-run average costs
 
  A) increase.
  B) decrease.
  C) decrease and then increase.
  D) increase and then decrease.



Ques. 2

If the market price faced by a perfectly competitive firm increases, in the short run how does the firm respond?
 
  What will be an ideal response?



Ques. 3

The U.S. tax system
 
  A) reduces inequality and shifts the Lorenz curve away from the line of equality.
  B) reduces inequality and shifts the Lorenz curve toward the line of equality.
  C) increases inequality and shifts the Lorenz curve toward the line of equality.
  D) increases inequality and shifts the Lorenz curve away from the line of equality.



Ques. 4

The table above provides information about the marginal private benefit for education.
 
  The marginal private cost, which also equals the marginal social cost, of educating a student is 16,000 per year and does not change as more students are educated. There is an external benefit from education that is equal to 12,000 per student year and does not change as more students are educated. What is the efficient amount of education? A) 40,000 student-years
  B) 60,000 student-years
  C) 80,000 student-years
  D) 100,000 student-years



Ques. 5

The cost data in the above table data show that production is characterized by
 
  A) economies of scale.
  B) constant returns to scale.
  C) decreasing returns to scale.
  D) More information is needed to answer the question.



Ques. 6

Firms in monopolistic competition maximize their profit by setting their price equal to their marginal revenue.
 
  Indicate whether the statement is true or false



Ques. 7

In the above figure, if income is 8, the initial price of a soft drink is 1, and the initial price of a milkshake is 2, a decrease in the price of a milkshake to 1 will move the consumer from point ________ to point ________.
 
  A) a; b
  B) b; c
  C) a; d
  D) a; c



Ques. 8

If a natural monopoly is broken up into many smaller firms then
 
  A) the price will decrease.
  B) the average total costs of production will increase.
  C) efficiency will increase.
  D) None of the above because it is illegal to break up a natural monopoly into smaller firms.
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patarroyo23patarroyo23
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Posts: 333
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6 years ago
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2goodgabe Author
wrote...

6 years ago
Brilliant
wrote...

Yesterday
Thank you, thank you, thank you!
wrote...

2 hours ago
Just got PERFECT on my quiz
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