If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
A. will experience a rise in long-term average costs.
B. will experience a lower marginal cost.
C. will expand its output.
D. will earn an economic loss.
Answer: D
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In the foreign exchange market, the supply curve of dollars is
A) vertical. B) downward sloping. C) identical to the demand curve for dollars. D) upward sloping. E) horizontal.
If the value of the Gini coefficient increased between any two-year period of time, this means that income inequality __________ between these two years.
a. decreased
b. increased
c. stay the same
National income is the income that individuals and firms earn from their production.
Answer the following statement true (T) or false (F)
Of the following groups, who gains from rent controls?
A) landlords B) construction workers and their union leaders C) poor people who have a hard time earning enough income to pay high rents D) high-income people who live in rent-controlled apartments