Regulating natural monopolies according to the "rate of return" criterion is likely to
a. reduce the incentive of firms to minimize cost.
b. result in a smaller quantity of output than when the natural monopolist is unregulated.
c. discourage the firms from investing resources in an effort to influence the decisions of the regulatory agency.
d. increase the number of firms in the industry.
A
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To operate efficiently, an economy generally "needs" ________ unemployment
A) structural B) cyclical C) seasonal D) frictional
The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital
Indicate whether the statement is true or false
Higher education is a normal good. If its price falls,
a. the quantity of higher education demanded will fall b. the substitution and income effects work in opposite directions c. the income effect is negative d. higher education will satisfy to the law of demand e. real purchasing power will fall
During this century, court decisions on antitrust have
a. changed from per se, to rule of reason, and back to per se b. changed from rule of reason, to per se, and back to rule of reason c. always emphasized per se d. always emphasized rule of reason e. varied from judge to judge without following any pattern