37. A natural monopoly is one in which a. there are economies of scale over the entire marketâs range of production. b. one firm can supply the entire market more cheaply than several firms can. c. average cost for one firm is still decreasing at the full market quantity. d. there are extremely large fixed costs. e. all of the above
38. A profit-maximizing monopoly will produce that output for which a. marginal revenue equals price. b. average cost is minimized. c. marginal cost is minimized. d. marginal revenue is maximized. e. marginal revenue equals marginal cost.
39. The principal difference between economic profits for a monopolist and for a competitive firm is that a. monopoly profits create major problems of equity whereas competitive profits do not. b. competitive profits exist only in the short run whereas monopoly profits may exist in the long run as well.
c. monopoly profits represent a transfer out of consumer surplus whereas competitive profits do not. d. monopoly profits are usually larger than competitive profits.
40. In a contestable market a. there are no barriers to entry. b. there are always many firms. c. long run economic profits may be positive. d. all firms are price takers.
37. A natural monopoly is one in which a. there are economies of scale over the entire marketâs range of production. b. one firm can supply the entire market more cheaply than several firms can. c. average cost for one firm is still decreasing at the full market quantity. d. there are extremely large fixed costs. e. all of the above
38. A profit-maximizing monopoly will produce that output for which a. marginal revenue equals price. b. average cost is minimized. c. marginal cost is minimized. d. marginal revenue is maximized. e. marginal revenue equals marginal cost.
39. The principal difference between economic profits for a monopolist and for a competitive firm is that a. monopoly profits create major problems of equity whereas competitive profits do not. b. competitive profits exist only in the short run whereas monopoly profits may exist in the long run as well.
c. monopoly profits represent a transfer out of consumer surplus whereas competitive profits do not. d. monopoly profits are usually larger than competitive profits.
40. In a contestable market a. there are no barriers to entry. b. there are always many firms. c. long run economic profits may be positive. d. all firms are price takers.
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