11. A natural monopoly is allowed to legally produce because a. All options are

Question

11. A natural monopoly is allowed to legally produce because
a. All options are correct
b. Economies of scale production results in lower prices for consumers
c. Average total cost in the long run falls when only one firm is producing
d. Deadweight losses are minimized

12. Marginal revenue is not equal to rpice when
a. Goods are similar
b. Goods are differentiated
c. Economic profits are zero
d. Barriers to entry are eliminated

13. There is a cartel in the market for
a. Pharmaceutical drugs
b. Fast food
c. All options are correct
d. Oil

14. Most monopolistic competitive firms succeed in business by
a. Colluding
b. Cutting costs by eliminating customer services
c. Increasing their research and development costs
d. Maintaining product differentiation

15. Antitrust laws attempt to prevent monopolies from
a. Producing too much output and flooding the market
b. Imposing large welfare losses on society
c. Reducing barriers to entry
d. Pricing products too low

Explanation / Answer

a. All options are correct c. Economic profits are zero d. Oil c. Increasing their research and development costs a. Producing too much output and flooding the market

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