The difference between cost-of-service regulation and rate-of-return regulation is that
A) the former sets prices based on actual costs, and the latter focuses on setting prices such that the firm earns a normal rate of return.
B) the latter sets prices first, and then the firm must keep costs in line if it wants to earn a profit, and the former sets price high enough to cover costs.
C) the former uses marginal cost pricing and the latter uses average cost pricing.
D) the former uses average cost pricing and the latter uses marginal cost pricing.
A
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An asset is said to be riskless if:
A) it can be easily converted into cash. B) its value does not change from day to day. C) its value is more likely to fall in future. D) it offers a positive rate of interest.
Describe the relationship between average variable cost and marginal cost
The female-male wage gap in the United States
A. will likely change from negative to positive over the next decade. B. has been increasing over the last 30 years. C. has been decreasing so much that while a raw wage gap still exists it is quite small. D. is nonexistent. E. has been decreasing over the past 30 years.
Economic growth causes the
A. production possibilities curve to shift leftward and the long-run aggregate supply curve to shift rightward. B. production possibilities curve to shift rightward and the long-run aggregate supply curve to shift leftward. C. production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward. D. production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward.