If price and quantity are not at their equilibrium positions, then

A. government must intervene.
B. a move to another position will help everyone.
C. it is possible to reallocate so that some people are better off without harming others.
D. a move to another position will not hurt anyone.


Answer: C

Economics

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a. True b. False

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Because natural monopolies have a declining average cost curve, regulating natural monopolies by setting price equal to marginal cost would

a. cause the monopolist to operate at a loss. b. result in a less than optimal total surplus. c. maximize producer surplus. d. result in higher profits for the monopoly.

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In Figure 9.5, a movement from Point A to Point C would result from

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To maximize profits, the firm in Figure 10.3 will produce:

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