A regulated natural monopolist allowed to earn a "fair" rate of return would produce to the point at which
A. the price per unit equals its marginal revenue.
B. the price per unit equals the long-run average cost.
C. the marginal revenue curve meets the long-run average cost curve.
D. the marginal revenue curve meets the long-run marginal cost curve.
Answer: B
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Based on the figure above, as a result of international trade, consumer surplus
A) increases by $150 million. B) decreases by $150 million. C) increases by $90 million. D) decreases by $90 million. E) remains unchanged.
If the Federal Reserve increases interest rates, ceteris paribus
A) the supply curve of U.S. dollars shifts leftward and the supply curve of European euros shifts rightward. B) the demand curve for U.S. dollars shifts leftward and the supply curve of U.S. dollars shifts rightward. C) the demand curve for U.S. dollars and the demand curve for European euros both shift rightward. D) the supply curve of U.S. dollars shifts rightward and the supply curve of European euros shifts leftward
Real income equals a household's income
A) in terms of the quantity of goods the household can buy. B) multiplied by the prices of the goods it buys. C) divided by the prices of the goods it buys. D) multiplied by the relative prices of the goods it buys.
If aggregate demand equals aggregate supply, macroeconomic equilibrium exists
a. True b. False Indicate whether the statement is true or false