Cost-of-service-regulation sets prices by considering
A) the actual variable cost of providing the service to the customer.
B) the actual total cost of providing the service to the customer.
C) the actual average cost of providing the service to the customer.
D) the actual marginal cost of providing the service to the customer.
C
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Explain how positive externalities cause a wedge between private marginal costs and social marginal costs. Give an example of a positive externality and explain why it is, in fact, a positive externality. Draw a supply/demand diagram and add a social marginal cost curve that represents the presence of the positive externality. Explain the relationship between the equilibrium quantity and that which is socially efficient.
What will be an ideal response?
When real GDP is ________ potential GDP, the unemployment rate is ________ the natural unemployment rate
A) greater than; less than B) less than; equal to C) equal to; greater than D) greater than; greater than
Inflation refers only to rising prices at a given time period
a. True b. False Indicate whether the statement is true or false
Almost 85% of American firms have less than
a. 20 employees. b. 100 employees. c. 500 employees. d. 1,000 employees.