If regulation imposes marginal cost pricing on a natural monopoly, then the monopoly will:
a. suffer persistent economic losses.
b. earn a fair, but not excessive, return on its assets.
c. produce too little output to achieve efficiency.
d. experience diseconomies of scale.
a
You might also like to view...
Giffen goods violate the law of demand
a. True b. False Indicate whether the statement is true or false
The assumption of short-run price stickiness implies:
a. that we must adjust nominal quantities for changes in inflation. b. that we must always allow for unexpected inflation. c. that expected inflation is zero and nominal quantities are the same as real. d. a balanced budget.
Explain the difference(s) between a debit card and a credit card.
What will be an ideal response?
The insurance industry is susceptible to moral hazard problems, but not problems of adverse selection.
Answer the following statement true (T) or false (F)