1. When a firm is no longer able to reduce its long run average cost by expanding, it has achieved its minimum efficient scale of production

a. True

b. False

2. A monopoly is likely to charge a higher price than an otherwise similar competitive industry would be

a. True

b. False

3. legislation that benefits many individuals at the expense of a few is a natural outcome of representative democracy

a. True

b. False

4. A natural monopoly, such as the local telephone company is characterized by

a. a lack of natural competitors

b. low fixed costs and diseconomies of scale

c. economies of scale

d. a lack of government regulation

e. constant costs of production

5. Government attempts to prohibit monopolization of a market are known as

a. antitrust regulation

b. economic regulation

c. social regulation

d. anticoompetitive regulation

e. Herfindahl regulation

6. which of the following is the best example of a vertically integrated firm

a. general electric which produces light bulbs, jet engines, washing machines, and so on

b. kinko's which has a photocopy store near many colleges and univesities

c. usx corporation which owns ore and coal mines, coke ovens, blast furnaces, mills, and foundries

d. intel which makes computer chips for most of the coomputer manufacturers

e. century 21 which has real estate offices that help people sell a house in one city and buy another house in another city