The figure above shows a natural monopoly that the government must regulate. Which of the following pairs most likely results in similar outcomes?
A) marginal cost pricing and rate of return regulation
B) marginal cost pricing and a two-part tariff
C) average cost pricing and rate of return regulation
D) predatory pricing and price caps
E) marginal cost pricing and price cap regulation
C
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Which of the following results in a movement upward along the supply curve for movies in theaters?
A) an increase in the price of movie tickets B) a decrease in the price of movie tickets C) a decrease in the price of downloaded movies D) a decrease in movie star salaries E) an increase in the number of theaters
If our government cuts taxes, then we will see
a. an upward movement along the AD curve b. a downward movement along the AD curve c. the AD curve shift to the left d. the AD curve shift to the right e. the AS curve shift to the right
For a monopoly,
a. average revenue exceeds marginal revenue. b. average revenue equals marginal revenue. c. average revenue is less than marginal revenue. d. price equals marginal revenue.
Which of the following indicates the number of workers who are willing to work but are unemployed at the optimal union wage rate in Figure 31.1?
A. 22. B. Zero. C. 14. D. 6.