Setting price equal to marginal cost in a natural monopoly will lead to
A. excess profits for the firm.
B. losses for the firm.
C. zero profits for the firm.
D. One cannot tell without further information.
Answer: B
You might also like to view...
Which of the following is an example of capital?
A) A cell phone bought by an individual for her younger brother B) A tractor used by a farmer for plowing his field C) A used television set purchased by a family D) Alcoholic beverages served at a corporate event
Beginning in December 2007, the Fed began cutting the federal funds rate from 4.25% to less than 1%. During this time, it was engaged in ________ monetary policy in order to reduce the threat of a ________ in the US economy
A) expansionary; stagflation B) contractionary; stagflation C) expansionary; recession D) contractionary; recession
. The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of
a. the quantity supplied minus the quantity demanded. b. surpluses, shortages, and quantity. c. goods, services, labor, and financial capital. d. price controls and equilibrium prices.
What is regulatory capture? Name an industry in which regulatory capture is present
Please provide the best answer for the statement.