What will happen if a second firm enters a natural monopolistic market?
A) The demand curve of the typical firm will shift to the left.
B) The demand curve will lay above the long-run average cost curve.
C) The profit will be reduced to zero for both firms.
D) It will have no effect on the profit of the first firm.
Correct Answer:
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Q1: Q2: Q3: Most often,a natural monopoly will Q4: A natural monopoly is the result of Q6: Recall the Application about the British experience Q7: Which of the following industries is a Q8: A natural monopoly is characterized by Q9: If the government sets a maximum price Q10: If a natural monopoly is allowed to Q11: To maximize profit,a natural monopolist will produce
A) charge the
A) decreasing
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