Earning-sharing regulation involves
A) setting the monopoly's price equal to its average total cost.
B) requiring that the monopoly share its profits with its customers if the profits rise above a certain level.
C) setting a maximum price the monopoly may charge and maintaining it for many years.
D) assuming a natural monopoly will not charge a higher than profit-maximizing price.
E) setting the monopoly's price equal to its marginal cost.
B
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If there is a decline in world autonomous consumption ________
A) the domestic real interest rate would fall B) domestic investment would rise C) net exports would fall D) all of the above E) none of the above
In the monetary intertemporal model, the long-run effects of an increase in the growth rate of money include
A) an increase in output and an increase in the real wage. B) an increase in output and a decrease in the real wage. C) a decrease in output and an increase in the real wage. D) a decrease in output and a decrease in the real wage.
The term frictional unemployment refers to persons who are out of work
a. due to technological change. b. due to strikes or lockouts. c. and have given up looking for work. d. because they are between jobs.
Based on the real interest rate, who tends to benefit from unanticipated inflation in terms of borrowing and lending?
What will be an ideal response?