This topic contains a solution. Click here to go to the answer

Author Question: In a natural monopoly, throughout the range of market demand, a. marginal cost exceeds average cost ... (Read 113 times)

JGIBBSON

  • Hero Member
  • *****
  • Posts: 538
In a natural monopoly, throughout the range of market demand,
 a. marginal cost exceeds average cost and therefore pulls average cost upward
  b. average cost exceeds marginal cost and therefore pulls marginal cost upward
  c. marginal cost is below average cost and therefore pulls average cost downward
  d. average cost is equal to marginal cost
  e. there are diseconomies of scale

Question 2

The Hound Dog Bus Company contemplates expanding its Virginia operations by offering service from Fairfax to Arlington. The total cost of the trip would be 120, of which 50 is fixed cost, which it has already paid. The firm expects to earn 60 in revenue from the trip. The Hound Dog Bus Company should
 a. offer this service because it will earn a positive economic profit
  b. not offer this service because the marginal revenue is less than the marginal cost
  c. offer this service because the revenue exceeds fixed cost
  d. not offer this service because the total cost exceeds the total revenue
  e. offer this service because the added revenue exceeds the added cost of this service



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ilianabrrr

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

C

Answer to Question 2

B




JGIBBSON

  • Member
  • Posts: 538
Reply 2 on: Jun 30, 2018
:D TYSM


kishoreddi

  • Member
  • Posts: 329
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Your heart beats over 36 million times a year.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

For a complete list of videos, visit our video library