If a natural monopoly regulatory commission sets a price where marginal cost is equal to demand
A) the firm would earn monopoly profits. B) the firm would incur a loss.
C) economic efficiency would not be achieved. D) the firm would break even.
B
You might also like to view...
Retained earnings are corporate earnings that are paid as dividends to stockholders
Indicate whether the statement is true or false
Income in the form of goods and services is
A) known as money income. B) known as income in kind. C) not considered income by economists. D) not part of wealth.
If the world price is above the domestic "no-trade" equilibrium price, then with international trade, the shortage caused in the domestic market can be met by foreign imports
a. True b. False Indicate whether the statement is true or false
Which of the following is consistent with the idea that high money supply growth leads to high inflation?
a. the quantity theory and evidence from four hyperinflations during the 1920's b. the quantity theory but not evidence from four hyperinflations during the 1920's c. evidence from four hyperinflations during the 1920's but not the quantity theory d. neither the quantity theory nor evidence from four hyperinflation during the 1920's