Which of the following is NOT a reason why a monopoly might be regulated?
A. To reduce the inefficiency associated with profits
B. To limit prices in important markets with economic or political consequences
C. To deal with the negative consequences of government-created monopolies
D. To ensure that a good is produced at least cost
A. To reduce the inefficiency associated with profits
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How are the following events likely to affect the market supply of rice in an economy?
a) A fall in the wage rate of farm labor b) An increase in the productivity of farm capital due to better technology c) An increase in the use of agricultural land for non-agricultural purposes
Explain the rational expectations hypothesis
What will be an ideal response?
If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes ________, and the price received by Brazilian producers of ethanol ________
A) does not change; does not change B) rises; rises C) rises; falls D) falls; rises E) falls; falls
Of the following, the riskiest assets held by commercial banks are
A) reserves. B) U.S. government bonds. C) U.S. government Treasury bills. D) loans.