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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Opportunity cost is the difference between the nominal and real cost of some action
Indicate whether the statement is true or false
A firm in a perfectly competitive industry faces the following cost and revenue conditions: ATC = $6; AVC = $3; MR = MC = $5. The firm is
A) earning economic profits. B) experiencing economic losses. C) experiencing zero profits. D) in a position in which it should shut down.
Which of the following is the best example of a quota?
a. a tax placed on all small cars sold in the domestic market b. a limit imposed on the number of men's suits that can be imported from a foreign country c. a subsidy from the U.S. government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits d. a $100-per-car fee imposed on all small imported cars
Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples and 41 pears. If the economy is currently at point A, the opportunity cost of moving to point B is
What will be an ideal response?