If a regulatory commission set a price for a natural monopoly where marginal cost is equal to demand
A) the firm would earn monopoly profits.
B) economic efficiency would not be achieved.
C) the firm would incur a loss.
D) the firm would break even.
Answer: C
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A production quota on tobacco lowers the price of tobacco and the marginal cost of producing it
Indicate whether the statement is true or false
Which of the following allows you to provide information about the relationship between two variables?
a. coordinate system. b. pie chart c. bar graph d. time-series graph
Economic research indicates that sports franchises are excellent means by which to stimulate local economic growth.
Answer the following statement true (T) or false (F)
If autonomous consumption rises by $60 and, as a result, Real GDP rises by $240, then the marginal propensity to consume is
A) 0.25. B) 0.75. C) 0.05. D) 0.95. E) none of the above