In the above figure, if this natural monopoly is not regulated the deadweight loss to society is
A) ecf.
B) ebc.
C) gac.
D) gde.
C
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Suppose there are 10 million part-time workers and 90 million full-time workers in an economy. Five million of the part-time workers switch to full-time work. As a result, the
A. official unemployment rate will fall. B. size of the labor force will increase. C. official unemployment rate will rise. D. official unemployment rate will remain unchanged.
Offering to pay the passenger in front of you to keep her from reclining her airplane seat is an example of
A) a tradable exchange contract. B) a Pigovian solution to an externality situation. C) a Coasian solution to an externality situation. D) command-and-control policy.
The perfectly competitive seller's short-run supply curve is
A) its entire marginal cost curve. B) its marginal revenue curve. C) the part of its marginal cost curve above the average variable cost curve. D) the part of its marginal cost curve above the average total cost curve.
Suppose that only two goods are produced in an economy. If a country possesses the comparative advantage in the production of one good then it:
A. cannot also possess the comparative advantage in the production of the other good. B. must also possess the absolute advantage in the production of that good. C. cannot also possess the absolute advantage in the production of that good. D. must also possess the comparative advantage in the production of the other good.