Ch13_Practice_Problems

Natural monopoly c government created monopoly d a

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The shape of the average total cost curve reveals information about the nature of the barrier to entry that might exist in a monopoly market. Which of the following monopoly types best coincides with the figure? a. ownership of a key resource by a single firm b. natural monopoly c. government- created monopoly d. a patent or copyright monopoly 6.Refer to Figure 1. The shape of the average total cost curve in the figure suggests an opportunity for a profit- maximizing monopolist to take advantage of a. economies of scale. b. diseconomies of scale. c. diminishing marginal product. d. increasing marginal cost. 7.Refer to Figure 1. Considering the relationship between average total cost and marginal cost, the marginal cost curve for this firm a. must lie entirely above the average total cost curve. b. must lie entirely below the average total cost curve. c. must be upward sloping. d. does not exist. 8....
View Full Document

This document was uploaded on 04/06/2014 for the course ECON 1 at UCLA.

Ask a homework question - tutors are online