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

Author Question: If the average cost curve for an individual firm is decreasing when it intersects the market demand ... (Read 64 times)

tfester

  • Hero Member
  • *****
  • Posts: 534
If the average cost curve for an individual firm is decreasing when it intersects the market demand curve, why is a natural monopoly likely to develop in this market? Explain.
 
  What will be an ideal response?

Question 2

The forecasting method that involves using an average of past observations to predict the future (if the forecaster feels that the future is a reflection of some average of past results) is the
 
  A) moving average method.
  B) econometric forecasting method.
  C) exponential smoothing method.
  D) Both A and B
  E) Both A and C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

BUTTHOL369

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

Perfect competition leads to firms increasing size until reaching the minimum of the AC curve. If firms naturally did so, before reaching this size, a single firm would be left in the market. That firm will no longer need to act as a price-taker as its size gives it cost advantages over potential entrants.

Answer to Question 2

E




tfester

  • Member
  • Posts: 534
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)


helenmarkerine

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Gracias!

 

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

For a complete list of videos, visit our video library