Question

Natural monopolles: Multiple Choice Skipped are the only monopolies thot are efficient con capture the lowest production costs possible for the industry are always protected by government policy generally earn zero eccounting profts due to regulstions

Answer 1

Question 22

Natural monopolies refers to the firm that can produce the good at such low cost due to occurrence of economies of scale that it is able to cater to the entire market demand at the lowest possible cost.

This lowest possible cost due to economies of scale acts as natural entry barrier and thus give monopoly status to the firm.

Thus,

Natural monopolies can capture the lowest production costs possible for the industry.

Hence, the correct answer is the option (b).

Question 24

According to economic point of view, the main goal of business is to maximize profit.

This implies that a business always aims for profit-maximization.

Hence, the correct answer is the option (c).

Question 26

Price per pair = $50

Number of pairs = 500,000 pairs

Calculate the total revenue -

Total revenue = Price per pair * Number of pairs sold

Total revenue = $50 * 500,000 = $25,000,000

The total revenue would be $25,000,000.

Hence, the correct answer is the option (a).