Price cap regulation is a
A) price ceiling.
B) price floor.
C) form of marginal cost regulation.
D) type of rate of return regulation.
A
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The difference between absolute advantage and comparative advantage is called gains from trade
Indicate whether the statement is true or false
Because a monopolist is the sole producer in its market, it can necessarily alter the price of its good (i) without affecting the quantity sold. (ii) without affecting its average total cost. (iii) by adjusting the quantity it supplies to the market
a. (ii) only b. (iii) only c. (i) and (ii) only d. (ii) and (iii) only
The table below shows the marginal benefit and marginal cost of purchasing an additional unit of 3 different public goods. Marginal benefitMarginal costTotal spending on the public goodPublic good 1$20$20$1,500Public good 2$15$25$800Public good 3$10$5$700 Total economic surplus could be increased by reallocating total spending away from
A. public good 2 toward public good 3. B. public good 2 toward public good 1. C. public good 1 toward public good 3. D. public good 3 toward public good 1.
If a textile worker earns $38,000 per year working in the textile mill on a job that was saved by a protective tariff costing consumers $148,000 per year (for that job alone), the textile worker could be paid $48,000 to stay at home all day watching TV until the protective tariff is eliminated, and consumers would still be better off by approximately
A. $48,000 per year. B. $168,000 per year. C. $18,000 per year. D. $100,000 per year.