The regulation of natural monopolies:
A. typically takes the form of setting a maximum price that can be charged.
B. always causes the industry to operate at a loss.
C. eliminates deadweight loss.
D. is common in the tobacco industry.
A. typically takes the form of setting a maximum price that can be charged.
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A leftward shift of the money supply ________
A) may come about from an increase in the quantity of money supplied by the Federal Reserve B) may come about from an increase in the price level C) leads to a decrease in interest rates ceteris paribus D) all of the above E) none of the above
If a firm refuses to hire any minorities due to a personal prejudice, its profits will
a. not be affected. b. increase slightly. c. increase markedly. d. decrease.
Why is the supply curve vertical in this graph?
a. Q1 is fixed.
b. The movement from P1 to P2 is slight.
c. The movement from P1 to P2 is more than 10 percent.
d. Q1 increases upwards, not horizontally.
If a consumer is maximizing utility and then the price of Good A increases: a. the marginal utility from the consumption of Good A will fall
b. the marginal utility from the consumption of Good A will remain unchanged. c. the marginal utility per dollar spent on Good A will decrease. d. consumption of Good A will increase.