If a regulatory commission wants to establish a socially optimal price for a natural monopoly, it should select a price:
A. at which the marginal cost curve intersects the demand curve.
B. at which marginal revenue is zero.
C. at which the average total cost curve intersects the demand curve.
D. that corresponds with the equality of marginal cost and marginal revenue.
Answer: A
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If the government engages in contractionary fiscal policy a likely reason would be:
A. the economy is operating at a level that is just below full employment. B. they think the economy is not growing fast enough and they want to speed it up. C. they think the economy is growing too quickly and they want to slow it down. D. people are not spending enough money and they want to boost spending.
The one-dollar, one-vote metric implies that every dollar of gain or loss is just as important as every other dollar of gain or loss, regardless of who the gainers or losers are.
Answer the following statement true (T) or false (F)
Refer to the above figure. Autonomous consumption is
A. only at point A. B. to the left of point B. C. only at point B. D. to the right of point B.
In economics, the term "investment" refers to the purchase of stocks and bonds.
Answer the following statement true (T) or false (F)