This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In a natural monopoly, throughout the range of market demand, a. marginal cost exceeds average cost ... (Read 116 times)

JGIBBSON

  • Hero Member
  • *****
  • Posts: 538
on: Jun 30, 2018
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
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


JGIBBSON

  • Member
  • Posts: 538
Reply 2 on: Jun 30, 2018
Wow, this really help

pratush dev

  • Member
  • Posts: 321
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

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

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Range of Motion of the Hip Joint, Hyperextension Range of Motion of the Hip Joint, Hyperextension
A Natural Oil Seep A Natural Oil Seep
All of the homes in this new neighborhood of Brentwood, California, are for sale, evidence of the co All of the homes in this new neighborhood of Brentwood, California, are for sale, evidence of the co
Average Global Temperature Rise over the Past Century Average Global Temperature Rise over the Past Century
How to transform the natural logarithmic function (ln⁡x) How to transform the natural logarithmic function (ln⁡x)
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Video: Knee Animation

For a complete list of videos, visit our video library