When a natural monopoly is regulated to charge a price equal to average total cost, producer surplus decreases, but total surplus increases.
a. true
b. false
a. true
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What type of risk behavior does the person exhibit who is willing to pay $5 for the chance to bet $60 on a game where 20% of the time the bet returns $100, and 80% of the time returns $50? Explain
What will be an ideal response?
Which of the following is not an example of price discrimination?
a. Senior citizen discount at the movies b. Grocery coupons c. Children haircuts d. Charging a higher price for ice-cream during the summer and a lower price in the winter
The payment for a factor of production that is completely inelastic in supply is
A. discounting. B. economic rent. C. opportunity cost. D. limited liability.
________ is (are) estimated at approximately $100 billion per year.
A. Capital flight from the United States B. Remittances sent from developed countries to less developed countries C. Social overhead capital in the United States D. The value of brain drain flowing into the United States