What is the main problem regulators face when setting a price for a natural monopoly?
a. It is difficult to determine the quantity and price that the monopolist wants to produce.
b. It is difficult to determine what the monopolist’s marginal cost is.
c. It is difficult to determine the quantity consumers want to buy at the monopolist’s price.
d. It is difficult to determine the price that doesn’t bankrupt the firm but doesn’t overcharge consumers.
d. It is difficult to determine the price that doesn’t bankrupt the firm but doesn’t overcharge consumers.
You might also like to view...
Suppose the residents of Metropolis travel to work either by bus or train. If the price of train tickets increases, then:
A. the demand for train tickets will decrease. B. the demand for bus tickets will increase. C. the demand for bus tickets will decrease. D. the demand for train tickets will increase.
According to the Cambridge approach to the quantity theory, people hold money:
a. to store their wealth. b. to make transactions. c. as a substitute for consumption. d. only when they have to.
Skill-biased technological change increases wage inequality by altering the ________ high-skilled workers relative to low-skilled workers.
A. supply of B. demand for C. mobility of D. reservation price of
In the United States, _________________ has been set up to provide disability and retirement benefits to workers.
a. Communism b. Social Security c. Welfare d. WIC