If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the consumer surplus will be
A) $0.
B) $8 million.
C) $16 million.
D) $32 million.
C
You might also like to view...
Most food products have low income and price elasticities of demand
Indicate whether the statement is true or false
Adam Smith revolutionized the way we think about economic growth with his celebrated book called _________ that was published in _________
a. Progress and Poverty; 1890 b. Capital; 1867 c. The Theory of Business Cycles; 1936 d. The Wealth of Nations; 1776 e. The Theory of Economic Growth; 1914
The empirical evidence suggests that periods of high productivity growth will cause which of the following in the short run?
A) higher markups B) lower unemployment C) constant real wages D) greater equality in wages E) none of the above
Negative supply shocks cause shifts in:
A. the short-run aggregate supply curve and, possibly, the long-run aggregate supply curve. B. the monetary policy reaction curve but only if policymakers do not change their inflation target. C. only the short-run aggregate supply curve. D. the dynamic aggregate demand curve.