In an industry characterized by a natural monopoly, which of the ...

[maychende]

In an industry characterized by a natural monopoly, which of the following characteristics will be observed?
 a. The long-run average cost curve will be upward sloping.
  b. The market price of the product will be very low.
  c. Competition is both impossible and inefficient.
  d. Number of producers operating in this market will be low.

Question 2

Given a perfectly competitive market structure, at the profit-maximizing output level, a firm's total fixed cost is 10, total variable cost is 100, marginal revenue is 4, and the quantity demanded is 50 . The total profit earned by the firm is:
 a. 70.
  b. 65.
  c. 90.
  d. 70.
  e. 75.

[yahahah24021]

Answer to Question 1

C

Answer to Question 2

c