Author Question: Which of the following is true under natural monopoly? a. The marginal cost curve will be above the ... (Read 38 times)

Shelles · **on:** Jun 30, 2018

Which of the following is true under natural monopoly?
a. The marginal cost curve will be above the average cost curve.
b. The monopolist will set price equal to marginal cost and will earn economic profits.
c. Economies of scale exist.
d. Output is produced under conditions of constant cost.

Question 2

Which of the following most directly reflects the law of diminishing marginal utility?
a. After watching two football games, Terry decides to watch a third game.
b. A sports fan enjoys watching Monday night football rather than going to the theater.
c. After listening to three compact discs, Kim decides to go bowling rather than listen to a fourth disc.
d. A musician receives the biggest ovation of the evening after playing the final number of a recital.