A natural monopoly has _________, but will __________ if left unregulated
a. exclusive access to a natural resource; price competitively
b. exclusive access to a natural resource; not maximize profit
c. low average total cost; have high marginal costs
d. low average total cost; charge a high price
e. low average total cost; undercut its competitors
D
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Which of the following must be true about homothetic tastes:
A. Utility functions that represent those tastes are homogeneous of degree 1. B. There exists a utility function that represents those tastes and is homogeneous of degree 1. C. There exists a utility function that represents those tastes such that the expenditure function is homogeneous of degree 1. D. The indirect utility function is homogeneous of degree zero. E. Both (a) and (c). F. Both (b) and (c). G. Both (b) and (d) H. None of the above.
The figure above shows the market for milk. If the government pays the milk producers a subsidy and production increases to 300 gallons per day
A) the market is efficient because the marginal social benefit from the last gallon of milk exceeds its marginal social cost. B) the market is efficient because the total social benefit from milk exceed the total social cost. C) there is a deadweight loss because the marginal social benefit from the last gallon of milk exceeds its marginal social cost. D) there is a deadweight loss because the marginal social cost of the last gallon of milk exceeds its marginal social benefit.
Discuss in detail the three things mentioned in the text that the Federal Reserve did to deal with the 2007-2009 financial crisis
A supply curve that illustrates the law of supply ____________.
Fill in the blank(s) with the appropriate word(s).