32. Which of the following distinguishes a natural monopoly from all other market structures, including non-natural, or classic, monopolies?  A single firm with market power Multiple suppliers having higher production costs than a single supplier Average total costs that are rising at the profit-maximizing point Productive and allocative inefficiency at the profit-maximizing quantity and price A unique product

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32. Which of the following distinguishes a natural monopoly from all other market structures, including non-natural, or classic, monopolies? 
A single firm with market power
Multiple suppliers having higher production costs than a single supplier
Average total costs that are rising at the profit-maximizing point
Productive and allocative inefficiency at the profit-maximizing quantity and price
A unique product

 

35.


Which of the following explains the price a monopolistically competitive firm charges when it is earning zero economic profits? 
The price is equal to average total cost at the quantity where marginal revenue equals marginal cost.
The price is equal to average total cost at a quantity where marginal revenue is less than marginal cost.
The price is greater than average total cost at the quantity where marginal revenue equals marginal cost.
It is equal to average total cost at a quantity where marginal revenue is greater than marginal cost.
The price is greater than average total cost at a quantity where marginal revenue is less than marginal cost.
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