"If Michigan's electric utilities were allowed to use marginal cost pricing, it would lead to economic profits for these utilities." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
The statement is incorrect. Imposing marginal cost pricing on natural monopolies results in the firms incurring economic losses not economic profits.
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Knowledge capital is ________ in production and ________. As a result, firms ________ free ride
A) nonrival; nonexcludable; cannot B) nonrival; excludable; can C) nonrival; nonexcludable; can D) rival; nonexcludable; cannot
Which of the following goods is likely to have the least elastic demand over the relevant range of prices?
a. insulin b. eggs c. milk d. Pepsi Cola e. gasoline
The ECB has favored using ______ as a target for implementing monetary policy.
A) money supply B) inflation targets C) unemployment figures D) fiscal deficits
An effective price floor results in a shortage.
Answer the following statement true (T) or false (F)