A natural monopoly that charges the profit-maximizing price will produce ________ amount of output than a ________
A) a larger; natural monopoly regulated with an average cost pricing rule
B) a more efficient; perfectly competitive industry
C) the same; natural monopoly regulated with a marginal cost pricing rule
D) a smaller; natural monopoly regulated with a marginal cost pricing rule
D
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Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________
A) become case A; become case 1 B) become case A; stay at case 2 C) stay at case B; become case 3 D) stay at case B; become case 1
Which of the following factors is not a major cause of long-term economic growth?
a. Investments in physical and human capital b. Constructive labor-management relations c. Expansionary monetary policy d. Effective corporate governance policies e. Government institutions and policies to improve economic efficiency
How much investment carried out by an individual business firm depends upon its MRP and the _____________.
Fill in the blank(s) with the appropriate word(s).
If the price elasticity of supply of a good is? 2, a 200 percent increase in the price of the good will change the quantity supplied by? ________.
A. 400 percent B. 200 percent C. 100 percent D. 50 percent