One goal of rate-of-return regulation is the prevention of
A) free market entry.
B) positive economic profits.
C) poor quality service.
D) environmental degradation.
Answer: B
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Which of the following pricing practices, if proved, would prove a firm engaged in predatory pricing?
A) The firm sets prices below marginal cost per unit. B) The firm sets prices below sunk cost per unit. C) The firm sets prices below total cost per unit. D) The firm sets prices low enough to drive all its competitors out of business. E) None of the above would prove predatory pricing had occurred.
If a country passes a labor law limiting the number of hours of work per week, GDP would ________ and leisure would ________
A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
The value of a model is determined by
A) the usefulness of its predictions in the real world. B) the extent of the profit earned by applying it. C) the realism of its assumptions. D) the model's attention to real world details.
The income of consumers increases. and the wage rate in the beef industry increases. As a result
A. the equilibrium quantity sold can either increase or decrease and the price can either increase or decrease, depending on whether the change in demand was greater than the change in supply. B. the equilibrium quantity sold increases and price can either increase or decrease, depending on whether the change in demand is greater than the change in supply. C. the price of beef stays the same and the quantity sold can either increase or decrease, depending on whether the change in demand is greater than the change in supply. D. the price of beef increases and the quantity sold can either increase, decrease or stay the same depending on whether the change in demand was greater than the change in supply.