Without government regulation, natural monopolies never earn zero profit in the long run.
Indicate whether the statement is true or false
Answer: False
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The above figure shows the market for pizza. The market is in equilibrium when people's incomes decrease. If pizza is a normal good, then which point represents the most likely new price and quantity?
A) A B) B C) C D) D E) E
A rent ceiling results in a shortage. As a result, which of the following do you expect?
A) The shortage will persist as long as the ceiling is in effect. B) Discrimination as landlords choose their tenants, possibly based on race, age, or gender. C) A black market for apartments whereby higher rents are obtained through various other charges. D) All of the above would be expected.
Explain what inflation targeting is. What are the advantages and disadvantages of this type of monetary policy strategy?
What will be an ideal response?
The Prime Directive says look to
A) the market. B) the government. C) competitors. D) all of these choices.