Regulation of a natural monopoly that forces it to price and produce as if it were a competitive firm results in
A) the market being instantly competitive.
B) higher profits for the monopoly.
C) economic losses for the monopoly.
D) a highly unstable marketplace.
Answer: C
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The foreign exchange rate is defined as the
A) equal to the amount of the current account deficit. B) equal to the amount of the capital account deficit. C) volume of the world currencies traded. D) rate or the speed with which the currencies of the worlds are traded. E) price at which one currency exchanges for another.
Refer to the payoff matrix below. If Cruise the World uses a mixed strategy, what probability for offering Specials should the firm use to equate Cruise R Us' expected profits from offering a Special or not offering a special (No Special)?
Cruise R Us and Cruise the World compete in the cruise line industry. Each firm needs to determine if they are going to offer special cruise packages with special rates or not offer the specials. The above payoff matrix shows the firms' net economic profit for each set of strategies.
A) 0.75 B) 0.375 C) 0.33 D) 0.625
The ease with which an asset can be converted into the economy's medium of exchange is known as _____
Fill in the blank(s) with correct word
Single-owner proprietorships often unintentionally exaggerate their profits because they
A. look at after-tax instead of pre-tax costs. B. neglect to consider the opportunity cost of the owner's labor. C. pay their bills late and therefore incur large interest charges. D. forget their explicit losses.