The primary benefit from natural monopolies is that: multiple choice 1 a single firm will be more innovative. a single firm will have lower costs of production. there are no deadweight losses if the firm is a natural monopoly. a natural monopoly is unlikely to have market power. The primary problem created by natural monopolies is that: multiple choice 2 competition is likely to create more desirable economic outcomes. a price higher than marginal cost creates deadweight loss. it is not possible to regulate natural monopolies. monopolies are always inefficient.

Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u.s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.