When promoting average cost pricing, regulators
A) include what they consider to be a normal rate of return on investment.
B) encourage firms to produce at the output level where price equals marginal cost.
C) fail to consider a return to investors, so regulated firms often have a hard time raising investment funds.
D) inflate costs so much that price ends up as large as would prevail under unregulated monopoly.
Answer: A
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Which auctioned good is more likely to have different private values across potential bidders?
A) a truckload of sand B) a Monet painting C) a brand new car D) a gold bar
Economics:
a. is a narrowly focused discipline.
b. is a broad-ranging discipline.
c. concerns itself only with the U.S. economy.
d. says little about "everyday life."
e. deals with minor problems.
An aggregate supply (AS) curve depicts the relationship between
What will be an ideal response?
Investment is
A. a negative function of real GDP. B. a positive function of real GDP. C. a positive function of interest rates. D. autonomous with respect to real GDP.