"Rate averaging" is only possible if
a. the firm is protected from price competition and new entry.
b. the firm is protected from losses resulting from unsuccessful innovation.
c. the firm can choose the level of service it wishes to provide.
d. "cream skimming" is permitted.
a
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What is the type of economic system that relies on one central authority to make economic decisions?
A) free market B) price system C) command and control D) mixed economic system
An example of ad valorem taxation is
A) a luxury tax. B) the corporate profit tax. C) the personal income tax. D) the Social Security tax.
Economies of scale occur where
a. long-run average cost falls as new firms enter the industry b. short-run average cost falls as new firms enter the industry c. long-run average cost falls as one firm expands plant size d. short-run average cost falls as one firm expands plant size e. long-run average cost rises as one firm expands plant size
A tax is progressive if the ratio of taxes to income rises as income rises
a. True b. False Indicate whether the statement is true or false