The primary reason government chooses to regulate a natural monopoly is to
a. promote its eventual nationalization
b. control price and output
c. control profit
d. create competition
e. distribute market power more evenly among the firms in the industry
B
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Over the last 50 years,
a. how has the labor force participation rate changed? b. how have the men's and women's labor force participation rates changed?
If a good has an external benefit, efficiency can be achieved by
A) leaving the market unregulated. B) monopolizing the market. C) offering a private subsidy on the good equal to the external benefit. D) imposing a tax on the good equal to the external benefit.
All of a firm's inputs are considered to be variable in the long run
a. True b. False Indicate whether the statement is true or false
Under the theory of perfect competition, firms and buyers know the availability and prices associated with all products in the market.
Answer the following statement true (T) or false (F)