Of the following, which is not an economic rationale for public utility regulation?
a. production process exhibiting increasing returns to scale
b. constant cost industry
c. avoidance of duplication of facilities
d. protection of consumers from price discrimination
e. none of the above
b
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As the percentage of a group required for agreement approaches 100 percent, _____ costs _____
a. decision-making costs; increase b. decision-making costs; decrease c. political costs; increase d. political costs; decrease
The egalitarian principle refers to
A) "To each according to her need." B) "To each exactly the same." C) "To each according to her productivity." D) "To each according to his ability."
An efficient customer sorting rule is one in which
a. customers with high willingness to pay secure the discounted goods b. customers are rationed randomly between the discounted and full price goods c. no customer purchase below her willingness to pay d. customers with the lowest willingness to pay secure the discount goods e. brand loyalty allows the incumbent to retain its regular customers
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and higher level of output. C. higher price level and higher level of output. D. lower price level and lower level of output.