In the above figure, if this natural monopolist were regulated and allowed to earn a "fair" rate of return, it would produce
A. at Q3 output rate.
B. at Q2 output rate.
C. past the Q3 output rate.
D. at Q1 output rate.
Answer: B
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According to President Reagan’s Executive Order 12291,
a. economic criteria had to be met when reviewing any major regulation b. a major regulation was defined as one having an annual effect of $1 million or more c. only least cost is needed in evaluating major rules, with no consideration for maximizing net benefits d. incremental benefits of policy must be maximized, with no consideration for minimizing incremental costs
A firm increases its output and its average total costs remain unchanged. Is the firm experiencing increasing returns to scale, constant returns to scale, or decreasing returns to scale?
What will be an ideal response?
If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________
A) risen; risen B) fallen; risen C) risen; fallen D) fallen; fallen
If a bank has excess reserves of $4,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 10 percent, then the bank has actual reserves of
A) $14,000. B) $19,000. C) $24,000. D) $29,000.