Cost-of-service regulation allows regulated companies to charge prices that
A) reflect the cost of regulating the industry, plus the marginal cost of the product.
B) allow monopoly profits to the producer.
C) reflect the actual average cost of providing the services to the customer.
D) are determined by competition in other geographic markets.
Answer: C
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The monopolistic competition market structure is characterized by a few large firms which account for a large percentage of industry sales
a. True b. False Indicate whether the statement is true or false
Industrial policy is an effort by a government to:
A. regulate prices in particular industries. B. identify the most profitable industries in the world, and adopt them in their country. C. favor some industries over others. D. control markets that are industrial.
Which of the following is false? a. A Nash equilibrium can be a dominant strategy
b. A Nash equilibrium maximizes a player's welfare, given the actions of its competitor, while a dominant strategy maximizes a player's welfare, regardless of the behavior of its competitor. c. A Nash equilibrium is just another name for a dominant strategy. d. A Nash equilibrium is a self-enforcing equilibrium.
Ceteris paribus, if interest rates in the United States rise relative to those abroad, then the surplus in the U.S. capital account would
A. Become smaller and the dollar would depreciate. B. Grow larger and the dollar would depreciate. C. Grow larger and the dollar would appreciate. D. Become smaller and the dollar would appreciate.