Use the above figure. If a commission regulates the above monopoly using fair-return (average cost pricing), then the industry's output will be ________ and the product's price will be ________
A) Q1; P1
B) Q2; P3
C) Q3; P2
D) Q4; P1
C
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The elimination of barriers to the international flow of labor tends to:
A. Lower the wage rates for all labor B. Raise the wage rates for all labor C. Increase worldwide production efficiency D. Decrease worldwide production efficiency
OPEC is an influential international oil exporting organization. It can be categorized as which of the following market structure.
a) monopolistic competition b) monopoly c) oligopoly d) pure competition
The substitution effect of an increase in the price of Raisin Bran refers to
A) the decrease in the demand for Raisin Bran when its price rises. B) the result that consumers will now switch to a substitute good such as Cheerios, and the demand curve for Raisin Bran shifts to the left. C) the fact that the higher price of Raisin Bran relative to its substitutes, such as Cheerios, causes consumers to buy less Raisin Bran. D) the fact that the higher price of Raisin Bran lowers consumer's purchasing power, holding money income constant.
Price discrimination strategies that cause considerable consumer resentment or a negative reaction from competitors can reduce or eliminate the effectiveness of such strategies
Indicate whether the statement is true or false