Output regulation forces the natural monopolist to produce at an output
A. Where MR = MC.
B. That perfectly competitive firms would choose.
C. Where MR equals zero.
D. Greater than its profit-maximizing choice.
Answer: D
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A union wants to increase its members’ wages without reducing employment. Which of the following strategies might achieve that goal?
A. Setting a high minimum wage rate for its members B. Increasing the number of members in the union C. Pushing employers not to allow featherbedding of workers D. Training its members to work more productively
When money is held as an asset, it is serving as a:
A. unit of account. B. standard of value. C. medium of exchange. D. store of wealth.
According to the principle of diminishing returns, if all factors of production but one are held constant and if that one factor is doubled, then eventually output will most likely:
A. double too. B. less than double. C. more than double. D. remain unchanged.
Let us suppose that if Oprah Winfrey was not a superstar she would have been a judge making $100,000 per year. If she makes $63 million dollars this year, her opportunity cost is
A) $63.0 million. B) $63.1 million. C) $100,000. D) $62.9 million.