A market in which a firm emerges as a monopoly due to large ...

[tsand2]

A market in which a firm emerges as a monopoly due to large economies of scale is referred to as:
 
  A) a natural monopoly.
  B) a regulated monopoly.
  C) a legal monopoly.
  D) an exclusive monopoly.

Question 2

Refer to the scenario above. Suppose the decision to levy a tax on emission of greenhouse gases costs 500 utils in present value and that the discount weight attached to the future benefit is 1/17.
 
  In this case, the net benefit earned by the people is: A) -300 utils.
  B) -441.18 utils.
  C) 333.65 utils.
  D) 420 utils.

[meltdown117]

Answer to Question 1

A

Answer to Question 2

B

[tsand2]

Excellent

[juliaf]

Gracias!