If the regulator wanted to maximize the total surplus in a natural monopoly market, the regulator has the firm set its price equal to its
A) average fixed cost.
B) average total cost.
C) average variable cost.
D) marginal cost.
D
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Higher government deficits ________ the supply of bonds and shift the supply curve to the ________, everything else held constant
A) increase; left B) increase; right C) decrease; left D) decrease; right
As the probability of detecting shirking increases, the size of the bond necessary to deter shirking
A) also increases. B) stays the same. C) decreases. D) increases at an exponential rate.
The price elasticity of demand measure is generally stated as an absolute value
a. True b. False Indicate whether the statement is true or false
Using the impartial spectator tool, one arrives at normative judgments based on your estimation of:
A. the goals of those individuals most harmed by the policy being considered. B. the best science available. C. your own normative judgments. D. what the blended judgment of all members of society would arrive at.