If the government regulates the price a natural monopolist can charge to be equal to the firm's average total cost, the firm has no incentive to reduce costs
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that over the next few years, the demand for dancing to country and western music decreases. Hence, at country and western dance clubs, the equilibrium price of admission ________, and the equilibrium quantity of dancing ________
A) rises; increases B) falls; increases C) rises; decreases D) falls; decreases E) does not change; decreases
Induced expenditure is any expenditure that
A) is fixed for all price levels. B) is fixed for all levels of real GDP. C) changes when real GDP changes. D) changes when the interest rate changes. E) is fixed for all levels of the interest rate.
In the long run, a single-price monopolist will
A) make zero economic profit. B) be able to continue to make an economic profit as long as there is a barrier to entry. C) end up being regulated by the government because it is making short-run economic profits. D) Both answers A and C are correct.
International trade equalizes the opportunity cost of producing any good around the world
a. True b. False