A merger of firms with a supplier-natural monopoly

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Reference no: EM13264253

1. A technological advance that increases the productivity of teachers can be expected to have what effects on the equilibrium labor market for teachers?

A) Wages will fall, and quantity of labor will rise

B) Wages and quantity of labor will remain the same

C) Wages will rise, and quantity of labor will fall

D) wages will fall, and quantity of labor will fall

E) Wages will rise, and quantity of labor will rise

2. A merger of firms with a supplier is a:

A) conglomerate merger

B) labor supply will increase at an increasing rate

C) MP must be constant

D) labor supply will increase at a decreasing rate

E) labor supply is a straight upward sloping line

3. If regulation imposes marginal cost pricing on a natural monopoly, then the monopoly will:

A0 suffer persistent economic losses

B) experience diseconomies of scale

C)producce too little output to achieve efficiency

D) earn a fair, but excessive, return on its assets

Reference no: EM13264253

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