Answer to Question #52940 in Microeconomics for Yana

Question

MULTIPLE CHOICE
1. The monopolist's demand curve is:
a. identical to the market demand curve.
b. identical to the marginal revenue curve.
c. below the marginal revenue curve.
d. a horizontal line at the market price.
e. a U - shaped curve.

2. A natural monopoly is a market where:
a. a single firm has control over a vital natural resource.
b. many smaller firms can produce the entire market output at the same per - unit cost as could
one large firm.
c. a single large firm can produce the entire market output at a lower per - unit cost than a
group of smaller firms.
d. many smaller firms can produce the entire market output at a lower per - unit cost than
could one large firm.

Answer 1

a. identical to the market demand curve.
c. a single large firm can produce the entire market output at a lower per - unit cost than a  group of smaller firms.