In a constant cost industry: a. a natural monopoly is likely to ...

[cagreen833]

In a constant cost industry:
 a. a natural monopoly is likely to occur.
  b. total cost is the same, no matter how much a firm produces.
  c. the long-run supply curve will be perfectly elastic.
  d. entry of new firms in the industry will lead to a reduction in the cost of inputs.

Question 2

When the government imposes a tax, sellers raise their price by the full amount of the tax.
 a. True
  b. False
  Indicate whether the statement is true or false

[livaneabi]

Answer to Question 1

c

Answer to Question 2

False

[cagreen833]

TYSM

[atrochim]

Excellent