Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to marginal cost, then:
A. this firm would earn excess profit.
B. price would equal ATC.
C. the firm would suffer losses.
D. revenue would just be sufficient to cover costs.
Answer: C
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In the above figure, if no government intervention occurs, at the unregulated competitive market equilibrium, there is an
A) external marginal benefit of $2. B) external marginal cost of $2. C) external marginal benefit of $1. D) external marginal cost of $3.
Russia chose a slow approach to creating a private economy and China chose a fast approach
Indicate whether the statement is true or false
One significant reason for the declining membership in unions in the U.S. is
a. more workers are entering the teaching field b. increasing employment in the industrial sector c. the structural shift of the economy toward services d. increasing cultural diversity in the workforce e. a decrease in the number of public sector employees
The Federal Reserve System is owned by
a. federal government agencies such as the Treasury b. the Congress of the United States c. the banks that are members of the Federal Reserve System d. the legislatures of all 50 states e. people who have deposits in member banks