Regulation of monopolies that allows prices to reflect only the actual cost of production and no monopoly profits is referred to as
A. cost-of-service regulation.
B. natural regulation.
C. service-opportunity regulation.
D. rate-of-return regulation.
Answer: A
You might also like to view...
Which of the following statements has usually held TRUE about the relationship between the trade deficits and government budget deficits?
A) There is a negative relationship between trade deficits and budget deficits. B) There is a positive relationship between trade deficits and budget deficits. C) There is no relationship between trade deficits and budget deficits. D) A relationship exists only when there is a balanced budget.
Which of the following best explains why airlines often cut their ticket prices at the last-minute in order to fill the remaining empty seats on their flights?
A) The Federal Aviation Administration ranks each airline based on the percentage of flights that are fully booked. These rankings affect the decisions of firms to use a particular airline to fly their employees to business meetings. B) Fixed costs in the airline industry are very large, but the marginal cost of flying one more passenger is very low. C) Airlines receive a subsidy from the government for each flight that is fully booked and departs on time. D) Cutting prices makes the airlines more popular with their customers, who may fly with the same airline in the future as the result of buying low-price tickets.
The recession of 1990-1992 ________ the trend set over 1965-1990 of ________ unemployment rates at each successive cyclical trough
A) continued, lower B) continued, higher C) broke, lower D) broke, higher
For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A) there is not good factor substitution in a monopsony. B) the wage rate offered the newest employee must be paid to all workers. C) the industry will be a closed shop. D) a normal rate of return must be paid to the owner.