67. In a natural monopoly, long-run average total cost decreases as output incre
ID: 1122020 • Letter: 6
Question
67. In a natural monopoly, long-run average total cost decreases as output increases. A) True B) False 68. Regarding the provision of a public utility like water, A) many small firms can deliver the water to households most efficiently. B) a state-owned firm can deliver the water to households most efficiently. C) two firms can deliver the water to households most efficiently D) a few large firms can deliver the water to households most efficiently. E) one firm can deliver the water to households most efficiently. Use the following to answer question 69: Exhibit 13-1 Numb er of Workers Employed per Week Marginal Prod uct ofLaborper Week 30 25 20 16 12 3 4 69. Refer to Exhibit 13-1. Suppose the firm is competitive and the output price is $10. Also suppose the prevailing wage is $200 per week. The firm will be able to hire workers. A) 5 B) 3 C) 2 D) 4 E) 6Explanation / Answer
67.Ans: the Above statement is True. In the long run as output increases, average total cost decreases because of economies of scale. Economies of scale are advantages to the firms.
68.Ans is B)
69.Ans is B)3 (20*10=200)
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