The problem with socially-optimal pricing regulation of a natural monopoly is that:
A. P < MC
B. P < AVC
C. P < ATC
D. P < MR
C. P < ATC
You might also like to view...
Suppose that the reserve ratio is 20 percent. A bank's customer deposits into her account $100,000 in funds from a check written on an account at another bank
The maximum potential increase in the money supply resulting from this transaction is equal to A) $500,000. B) $0. C) $20,000. D) $200,000.
When the government taxes a good or service, it
A) increases consumer surplus for the good or service. B) increases producer surplus for the good or service. C) eliminates the deadweight loss associated with the good or service. D) affects the market equilibrium for that good or service.
When the price system fails to generate an efficient allocation of resources
A) the market will always correct it. B) consumers will spend less. C) business will produce more. D) too few or too many goods will be produced.
A socialist economy is characterized by
A. an extensive reliance on markets to allocate final goods and services. B. an extensive reliance on the profit motive to govern resource allocation decisions. C. elimination of the problem of scarcity since all basic necessities are available to all citizens. D. public ownership of productive resources.