Electric utilities are often considered natural monopolies and are regulated
When would the price be highest: when the utility is not regulated, when it is regulated using an average cost pricing rule, or when it is regulated using a marginal cost pricing rule? When would its price be lowest?
The price would be highest if the utility was left unregulated and could set the profit-maximizing price. The price is lowest if the utility is regulated using a marginal cost pricing rule.
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Which of the following statements is true?
A) Income inequality within most countries has increased during the past 20 years. B) Income inequality across the entire world has decreased during the past 20 years. C) Income inequality within most countries and across the entire world has not changed much during the past 20 years. D) Both A and B are correct. E) None of the above is correct.
Monopolistically competitive firms engage in advertising to increase market share and make demand more inelastic
Indicate whether the statement is true or false
What happens to the equilibrium price when supply goes down?
A. the price stays the same B. the prices goes up C. the price goes up, and then goes down D. the price goes down
Total U.S. government expenditures as a percentage of GDP were largest during which of the following periods of time?
A. The Great Depression B. World War II C. The Vietnam War D. The Energy Crisis of the mid- and late-1970s