Author Question: If there is just one producer in an industry where the average total cost curve declines throughout ... (Read 61 times)

jessicacav · **on:** Jun 30, 2018

If there is just one producer in an industry where the average total cost curve declines throughout the output range up to where it intersects the industry demand curve:
a. the industry will be a natural monopoly.
b. charging a price equal to marginal cost would entail economic losses for the producer.
c. charging a price equal to average cost would entail a welfare cost.
d. All of the above would be true.

Question 2

A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money.
b. restricting international exchange of goods and services.
c. ensuring the convertibility of paper money into gold.
d. maintaining a fixed stock of foreign currencies.
e. ensuring balance of payment surplus.