With a natural monopoly,
A) no regulation is necessary because it is a natural monopoly.
B) regulation takes the form of forcing competition from new firms.
C) regulation takes the form of forcing the company out of business.
D) regulation can take the form of average cost pricing to allow coverage of costs.
E) regulation takes the form of breaking the company into several competing firms.
D
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Pollution is caused by a market failure, in an industry in which there is
A) unemployment. B) an over-allocation of resources in production. C) excess demand. D) excessive cost borne by the firm.
There is no cost of using your own savings in your business
a. True b. False Indicate whether the statement is true or false
Explain the effect of the following changes on equilibrium price and quantity of a commodity: (a) increase in average incomes. (b) increase in population
Subsidies paid to the health care industry for Medicare patients are paid by
A. Congress. B. the Teamsters union. C. the Federal Reserve. D. current taxes.