A regulated natural monopolist allowed to earn a "fair" rate of return would produce to the point at which
A) the price per unit equals the long-run average cost.
B) the marginal revenue curve meets the long-run average cost curve.
C) the marginal revenue curve meets the long-run marginal cost curve.
D) the price per unit equals its marginal revenue.
A
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Capital gains are the profit earned from the sale of
A) stocks. B) real estate. C) bonds. D) all of the above.
Refer to Table 11-1. Diminishing marginal returns sets in when the ________ worker is hired
A) 2nd B) 3rd C) 4th D) None of the above; the production function displays increasing marginal returns.
All food bought in the United States has an ingredient list on the packaging. This is an example of:
A. screening. B. signaling. C. requiring the more informed party to reveal missing information. D. building a reputation.