A flour mill holding exclusive contracts to 95 of the wheat in a ...

[go.lag]

A flour mill holding exclusive contracts to 95 of the wheat in a large geographic area may operate as a flour-producing monopoly locally because
 
  A) the mill has a very inelastic supply curve.
  B) the mill is a natural monopoly.
  C) the mill controls a key input.
  D) the government will declare it a monopoly.

Question 2

Suppose TC = 10 + (0.1  q2). If p = 10, the firm's profits will be
 
  A) 240.
  B) 250.
  C) 260.
  D) -10 because the firm will shut down.

[jgranad15]

Answer to Question 1

C

Answer to Question 2

A