If regulators set a price according to marginal cost pricing, the firm will ______.
a. earn positive economic profits
b. make zero economic profits
c. suffer an economic loss
d. earn the same level of profits as it would absent regulation
Ans: c. suffer an economic loss
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A tax cut ________ aggregate demand and ________
A) decreases; shifts the AD curve rightward B) increases; shifts the AD curve leftward C) increases; shifts the AD curve rightward D) decreases; shifts the AD curve leftward E) does not change; does not shift the AD curve
Using the data in the above table, if the price of an hour of labor is $20 and the price of a unit of capital is $10, then the most economically efficient technique for producing 100 sweaters is
A) A. B) B. C) C. D) D.
Refer to Figure 2-14. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of popsicles?
A) Greenland B) They have the same advantage. C) Iceland D) cannot be determined Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand.
What is the difference between the voting paradox and the Arrow impossibility theorem?
What will be an ideal response?