When regulating a natural monopoly, the regulating agency should set price equal to marginal cost
a. True
b. False
B
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The price of a bus ride decreases, and the total revenue of the bus company decreases. The demand for bus rides is ________
A) perfectly elastic B) inelastic C) unit elastic D) elastic but not necessarily perfectly elastic
A central bank commitment to a ________ rule for monetary growth can be conveyed by maintaining a ________ exchange rate
A) rigid, fixed B) rigid, flexible C) flexible, fixed D) non-inflationary, flexible
Housing prices peaked in:
a. 1997. b. 2000. c. 2003. d. 2006.
The legal system imposes large financial penalties on firms caught violating Environmental Protection Agency guidelines. The EPA's standards program is thus an example of a
a. market-based approach to reducing pollution. b. system of emissions taxes. c. system of emissions permits. d. direct-control system enforced through the courts.