With an average cost pricing rule, the quantity produced by the natural monopoly is ________ the quantity produced with a marginal cost pricing rule
A) greater than
B) less than
C) equal to
D) greater than in the long run and less than in the short run than
E) not comparable to
B
You might also like to view...
How do imports affect buyers' consumer surplus?
What will be an ideal response?
The "middle-class" ideal that developed in the early 19th century included which of the following elements?
(a) Women were socially and legally equal to men and were encouraged to choose between working and staying in the home (avoiding wage-labor in the factories). (b) Men were to be the income earners providing for the family's material needs while women were to play a greater role regarding the family's spiritual needs. (c) Apprenticeships, rather than public schools, would better serve the need of preparing children for middle-class careers. (d) Poverty among the lower classes was due not to their moral failure but rather low wages, uncertain employment, and lack of economic opportunity.
Because many immigrants are in low-paying jobs, they do not own homes but rent houses or apartments instead, and so they do not pay property taxes. What effect does this have on local tax revenue?
a. Very little, because landlords pay property taxes on rental units, which is reflected in the amount of rent charged b. A moderate impact, because most immigrant taxes go to the state in the form of income and sales tax c. A large impact, because immigrants use local services such as schools but do not pay for them d. A small impact, because most communities have few immigrants, and therefore the taxes they pay are negligible
Exhibit 2-10 Production possibilities curve data A B C D E Capital goods 0 1 2 3 4 Consumption goods25 23 19 13 0 Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must:
A. increase because the production possibility table shows only the maximum efficiency points. B. increase because of the law of increasing costs. C. decrease because of the law of increasing costs. D. decrease because of the finite nature of the resource base.