For a regulated natural monopoly, the marginal cost pricing rule is a rule that sets price ________ marginal cost and achieves an ________ amount of output
A) equal to; efficient
B) above; inefficient
C) below; efficient
D) equal to; inefficient
E) above; efficient
A
You might also like to view...
Refer to Exhibit 16-11. Assume that the starting point is point 1. Suppose that there is a supply-side change capable of reducing the capacity of the economy to produce. Which of the following best goes with the diagram shown?
A) New classical theory with policy incorrectly anticipated, bias downward
B) New classical theory with policy incorrectly anticipated, bias upward
C) Real business cycle theory
D) New classical theory with policy unanticipated
E) Policy ineffectiveness proposition (PIP)
The table above gives the CPI for a nation. Based on the table, we can determine that the reference base period is
A) 1994. B) 1996. C) 1998-2000. D) 2002. E) More information about when the Consumer Expenditure Survey was undertaken is needed to answer the question.
The marginal revenue of a price taker is
a. equal to price. b. less than price. c. more than price. d. unrelated to price.
The recession of 2008-2009 was associated with a fall in housing prices which shifted aggregate demand to the left
a. True b. False Indicate whether the statement is true or false