Under rate-of-return regulation, natural monopolies must use
A) marginal cost pricing.
B) average cost pricing.
C) efficient pricing.
D) monopoly pricing.
Answer: B
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The net exports effect exists because a:
a. higher price level will reduce interest rates and stimulate foreign investment. b. lower price level will make domestically produced exports less expensive relative to foreign goods. c. higher price level will reduce the purchasing power of money. d. lower price level will encourage Americans to import more foreign goods.
The number of presidentially appointed members who sit on the Federal Reserve Board of Governors is:
a. none. b. seven. c. nine. d. twelve.
Monthly payments on "exotic" mortgages are constant over the life of the mortgage.
Answer the following statement true (T) or false (F)
The supply of dollars in the foreign exchange market is likely to be upward sloping because as the price of a dollar (the exchange rate) falls
A. foreigners demand more American goods because these goods have become less expensive to foreign consumers. B. foreigners demand more foreign goods because these goods have become more expensive to foreign consumers. C. Americans demand more foreign goods because these goods have become less expensive to American consumers. D. Americans demand fewer foreign goods because these goods have become more expensive to American consumers.