Watt Power and Light, an electric company, will suffer an economic loss
a. even at its profit-maximizing output because marginal cost is always less than average cost
b. even at its profit-maximizing output because average cost is always less than marginal cost
c. if regulators insist that it produce where price equals marginal cost because marginal cost is less than average cost
d. if regulators insist that it produce where price equals marginal cost because average cost is always less than marginal cost
e. if regulators insist that it produce where price equals average cost because average cost is always less than marginal cost
C
You might also like to view...
Using the rule of 70, if the GDP per capita growth rate in the United States is 3.5 percent, real GDP per capita doubles every
A) 20 years. B) 24.5 years. C) 35 years. D) 70 years.
Banks will be examined at least once a year and given a CAMELS rating by examiners. The L stands for
A) liabilities. B) liquidity. C) loans. D) leverage.
We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will decrease when
A) supply increases and demand increases. B) supply decreases and demand decreases. C) supply decreases and at the same time demand increases. D) supply increases and at the same time demand decreases.
To address the shortage of physicians on the horizon, it will be necessary to
a. build more medical schools. b. provide more grants and scholarships for medical education. c. allow the admission of more foreign-educated physicians. d. all of these are true.