Which of the following will result in the most deadweight loss?
A) a natural monopoly regulated with marginal cost pricing
B) an unregulated natural monopoly
C) a natural monopoly regulated with average cost pricing
D) All of the above result in the same deadweight loss.
B
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The absence of cyclical unemployment means the economy is at the natural unemployment rate
Indicate whether the statement is true or false
The difference between the maximum amount consumers are willing and able to pay for each unit of a good and the amount consumers actually do pay is called:
a. consumer surplus. b. marginal benefit. c. marginal cost. d. productive efficiency.
Kevin has lost his job in an automobile plant because of the use of robots for welding on the assembly line. Kevin plans to go to technical school to learn how to repair microcomputers. The type of unemployment Kevin is faced with is:
a. Cyclical b. Natural c. Structural d. Frictional
Which would definitely not be an example of price discrimination?
A. Universities charge higher tuition for out-of-state residents. B. An electric power company charges less for electricity used during hours when production costs are lower. C. A doctor charges for services according to the income of patients. D. A theater charges children less than adults for a movie.