The defining trait of a natural monopoly is

an insurmountable barrier to market entry

a patent preventing competitors from entering the market

a low minimum efficient scale on the product's long-run average total cost curve

persistent economies of scale across the full market demand

allocative and productive inefficiency at the profit-maximizing quantity

Assuming a market with monopolistic competition, in which situation would a firm generate positive economic profit in the short run?

The price exceeds the average total cost.

The price is equal to the average total cost.

The marginal revenue is equal to the marginal cost.

The price is less than the average total cost.

The marginal revenue exceeds the marginal cost.

The best alternative foregone for any choice is known as the

associated cost

consumer's marginal utility

resource input cost

explicit cost

opportunity cost

A producer of widgets decides to stop producing widgets. Ceteris paribus, if this producer of widgets had a typical supply curve before their exit from the widget-making industry, what must happen to the market supply curve?

It will not change.

It will become more elastic.

There is insufficient data to determine.

It will shift right at every price with more output supplied.

It will shift left at every price with less output supplied.

A business hires workers to help groom people's pets. 111e following table shows the marginal productivity of each worker in number of pets groomed. Number of Workers Marginal Product OJU'I-FOON Wl'lich number of workers produces a total product of 36 pets groomed? : : Z : : CompanyAand Company B are competing oligopolists. Both companies are considering opening retail outlets to increase their prots. The payolT matrix shows the prots of the companies in millions based on their possible actions. Company B Open Retail Outlet No Retail Outlet CompanyA Open Retail Outlet $50, $40 $35. $30 No Retail Outlet 1555,3545 $50, $35 The govemment offers a $10 million subsidy to open a new retail outlet. What is the expected outcome of the new payofl matrix given the subsidy? O The Nash equilibrium will be that both companies will not open retaii outlets. O The Nash equilibrium does not change as a result of the subsidy. 0 Company A's dominant strategy remains the same, and it will open retail outlets. 0 Company B's dominant strategy remains the same, and it will not open retaii outlets. O CompanyA no longer has a dominant strategy, and both companies will open retail outiets. \fReview the table below, which shows the quantity supplied and quantity demanded for a private good. Price Quantity Supplied Quantity Demanded $1 3 7 $3 4 6 $5 5 5 $7 6 4 Assume the market shown is perfectly competitive and has social costs that exceed private costs. If these social costs were reflected in the market, how many goods would be exchanged? O Fewer than 5 units O 5 units O 6 units O More than 6 units O Indeterminate