For a Natural Monopoly, If Price Is Equal to Marginal

question 123

Multiple Choice

For a natural monopoly, if price is equal to marginal social cost, then

• A) the deadweight loss is as large as possible.
• B) the firm makes zero economic profit.
• C) there is no deadweight loss.
• D) there is no deadweight loss and the firm makes a positive economic profit.

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Definitions:

CMOS

Complementary Metal-Oxide-Semiconductor, a technology used for constructing integrated circuits including microprocessors, batteries, and digital camera sensors.

EPROM

A type of memory chip that is erasable and reprogrammable using ultraviolet light.

VRAM

Stands for Video Random Access Memory, a type of memory used to store image data that a computer display will use to render graphics efficiently.

RAM

Random Access Memory, a form of computer memory that can be accessed randomly, used for storing the operating system, applications, and data currently in use for quick access by the device's processor.