When regulated using rate of return regulation, who benefits from the practice of some natural monopolies to count sumptuous offices, free baseball tickets, golf excursions, and limousines as costs of production?
A) stockholders
B) managers of the monopoly
C) customers of the monopoly
D) regulators of the industry
E) None of the above answers is correct.
B
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Anna and Maria produce shirts and ties. The figure above shows Anna's PPF and Maria's PPF. Anna and Maria can achieve the gains from trade if Anna produces ________ and Maria produces ________
A) ties; shirts B) shirts and ties; only ties C) only ties; shirts and ties D) shirts; ties
If A and B are two disjoint sets, and "Pr" represents the probability, then Pr[A and B] will be:
a. negative. b. infinity. c. unity. d. zero.
If the inflation rate during a particular year is 2 percent, then the real interest rate that a lender will receive from a loan that promises a nominal interest rate of 10 percent is _____
a. 12 percent b. 8 percent c. 10 percent d. 2 percent
In the United States, government-imposed price supports are most often associated with
A) agricultural products. B) industrial products. C) consumer electronics. D) commercial building products.