Which of the following results in a natural monopoly?

		When a firm own a key resource.
		When the government grants a firm the exclusive right to supply a good or service.
		When there is a government license is required before a firm can sell a good or service.
		When a single firm is able to produce at a lower average cost than two or more firms.

The pursuit of self-interest in a commons where everyone has access to a valuable resource will cause:

		The common good of society to be realized
		The resource to be overused
		The positive externality to be eliminated
		The free-rider problem to be solved

If the price of its good falls below the minimum point on the AVC curve, the best a perfectly competitive firm can do is to:

		Shutdown and incur a loss equal to its total variable cost
		Keep producing and incur a loss equal to its total variable cost
		Shutdown and incur a loss equal to its total fixed cost
		Keep producing and incur a loss equal to its total variable cost

Which of the following statements about price ceilings is TRUE? (Assume the price ceiling is set below the equilibrium price)

	A.	Price ceilings make sellers worse off.
	B.	Price ceilings make buyers better off.
	C.	Both A and B are true.
	D.	Neither A nor B is true.