The purpose of social regulation is
A) to force a firm to produce at the point where marginal cost equals marginal revenue.
B) to control the quality of service provided by a monopolist.
C) to control the price that regulated enterprises are allowed to charge.
D) to focus on the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods.
D
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In the figure above, a factor that could cause the supply of bonds to increase (shift to the right) is
A) a decrease in government budget deficits. B) a decrease in expected inflation. C) expectations of more profitable investment opportunities. D) a business cycle recession.
When the Federal Reserve increases its target rate of inflation, it will set a ________ real interest rate at every inflation rate and the aggregate demand curve will ________.
A. lower; shift to the right B. higher; shift to the left C. lower; shift to the left D. higher; shift to the right
What does it mean when the products sold by the firms in an industry are homogeneous?
A) The product sold by one firm is a perfect substitute of the product sold by another firm in the same industry. B) Firms in the industry can produce the same product with different inputs. C) All firms in the industry are identical in size. D) The product sold by one firm is a perfect complement of the product sold by another firm in the same industry.
If costs rise more quickly than quality, then firm value will:
A. be maximized after total quality is achieved. B. be maximized before total quality is achieved. C. be minimized before total quality is achieved. D. always decline.