When a regulatory commission of a public utility, such as an electric company, chooses a fair price as the regulated price, it chooses P = MC
Indicate whether the statement is true or false
F
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From 1995 to 2001, the debt—GDP ratio in the United States
A) steadily fell. B) steadily increased. C) was about constant. D) fell from 1995 to 1998, then rose sharply.
When market participants have adaptive expectations
A) they use all information available to them. B) they only slowly adjust their expectations to news which could affect prices or returns. C) they are more likely to make accurate forecasts than if they have rational expectations. D) they are able to forecast interest rates more accurately than inflation rates.
These are the cost and revenue curves associated with a firm.
Assuming the firm in the graph is producing Q1 and charging P3, it is likely:
A. operating at a loss. B. an efficient outcome. C. not maximizing profits. D. in long-run equilibrium.
The profit-maximizing firm will be earning total revenue of
A. OFIN.
B. OFJM.
C. OFKL.
D. OGHM.