A. economies of scale
B. a high proportion of the total cost in the cost of capital goods
C. the market is very small
D. all of the above
Related Mcqs:
- Using government regulations to force a natural monopoly to charge a price equal to his marginal cost will ?
A. Cause the monopolist to exit the market
B. improve efficieny
C. raise the price of good
D. attract additional firms to enter the market - If regulators break up a natural monopoly into many smaller firms, the cost of production ?
A. will rise
B. will fall
C. will remain the same
D. could either rise or fall depending on the elasticity of the monopolist’s supply curve - A natural monopoly has a declining _______ over a large range of output?
A. long run marginal cost
B. short run marginal cost
C. long run average cost
D. long run marginal cost - The problem posed by a natural monopoly is that it faces a _____ This means that _______?
A. increasing average cost curve, marginal cost lies above average cost
B. increasing average cost curve, marginal cost lies below average cost
C. decreasing average cost curve marginal cost lies above average cost
D. decreasing average cost curve, marginal cost lies below average cost - A good produced by a natural monopoly is ?
A. rival but not excludable
B. neither rival nor excludable
C. not rival but excludable
D. both rival and excludable - In monopoly which of the following is true ?
A. There are many buyers and sellers
B. There is one main buyer
C. There is one main seller
D. The actions of one firm do not affect the market price and quantity - Which of the following is a characteristic of pure monopoly ?
A. One seller of the product
B. low barriers to entry
C. close substitute products
D. perfect information - In a monopoly which of the following is not true ?
A. Products are differentiated
B. There is freedom of entry and exit into the industry in the long run
C. The firm is a price taker
D. There is one main sellers - Which of the following is true regarding the similarities and differences in monopolistic competition and monopoly ?
A. the monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand curve
B. the monopolist charges a price above marginal cost while the monopolistic competitor charges a price equal to marginal cost
C. The monopolist makes economic profits in the long run while the monopolistic competitor makes zero economic profits in the long run
D. Both the monopolist and the monopolistic competitor operate at the efficient scale - Which of the following is not a nature public monopoly ?
A. mobile phone
B. electricity
C. water supply
D. postal service
