Which form of price regulation increases consumer well-being and allows the firm to stay in business?
A. Allow the firm to set its own rate of return.
B. Set prices equal to marginal cost.
C. Set prices equal to average cost.
D. Set lower prices when efficiency improves.
Answer: C
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Arriving at a decision by comparing total costs and total benefits is called marginal analysis
Indicate whether the statement is true or false
In the real business cycle model, a persistent increase in total factor productivity
A) increases the real wage and increases the price level. B) increases the real wage and decreases the price level. C) decreases the real wage and increases the price level. D) decreases the real wage and decreases the price level.
Jane purchases snickle-dees only because her friends do. This is
A) price-leadership. B) negative-sum game. C) positive market feedback. D) negative market feedback.
Look in your wallet. Your credit cards are
a. M1 money b. M2 and fiat money c. fiat money d. near money e. not money