The conventional way to regulate a natural monopolist is to force it to charge a price equal to marginal cost.
Answer the following statement true (T) or false (F)
False
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What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy?
a. They increased SRAS, causing real output and employment to increase. b. They reduced SRAS, causing real output and employment to increase. c. They increased SRAS, causing real output and employment to decline. d. They reduced SRAS, causing real output and employment to decline.
Would one expect the imports and exports between two countries to be approximately equal?
What will be an ideal response?
The marginal product of labor is
A. the percentage change in output divided by the percentage change in labor. B. the change in output that results from an increase of labor by one unit. C. the output produced by a worker of average quality. D. total output divided by total labor.
The term government failure refers to the:
A. Large losses suffered by publicly owned water, gas, and electric companies B. Large number of bankruptcies that have occurred recently among local governments C. Economically inefficient outcomes caused by voting problems or incentive structures in government D. Inability of government agencies to provide adequate police protection in low-income neighborhoods