Firm A is a monopoly because of network effects, whereas Firm B is a natural monopoly. Which of the following statements is likely to be true in this context?
A) The average total costs of both firms decrease as they increase their output.
B) The value of the product that both firms produce increases with an increase in the number of buyers.
C) Firm A enjoys a monopoly status because its average total cost decreases with increase in output, whereas Firm B enjoys a monopoly status because the value of its product increases as more consumers buy it.
D) Firm B enjoys a monopoly status because its average total cost decreases with increase in output, whereas Firm A enjoys a monopoly status because the value of its product increases as more consumers buy it.
Question 2
Vicky currently produces at point a in the figure above. If Vicky moves from point a to point b to point c, her opportunity cost of a modem ________.
A) decreases
B) increases
C) is zero
D) remains the same
The progression and effects of cancer.
Effects of the tomato apical stunt viroid.
Single atoms form the nodes of an elementary quantum network
Dentition, as illustrated in Knight's Sketches in Natural History
Effects of Altitude on Exercise Capacity
Summary of the effects on transcription levels of different point mutations