If the government regulates the price that a natural monopolist can charge to be equal to the firm's average total cost, the firm will
a. earn zero profits.
b. earn positive profits, causing other firms to enter the industry.
c. earn negative profits, causing the firm to exit the industry.
d. minimize costs in order to lower the price that it charges.
a
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If the marginal social cost of a television exceeds the marginal social benefit of a television, it would increase society's total surplus to decrease production of televisions
Indicate whether the statement is true or false
The meaning of "terms of trade" is
A) the price of a country's exports divided by the price of its imports. B) the amount of exports sold by a country. C) the price conditions bargained for in international markets. D) the quantities of imports received in free trade. E) the tariffs in place between two trading countries.
Which list has market structures in the correct order from the most to the least market power?
a) Oligopoly, perfect competition, monopolistic competition, monopoly b) Monopoly, oligopoly, monopolistic competition, perfect competition c) Perfect competition, oligopoly, monopolistic competition, monopoly d) Monopoly, monopolistic competition, oligopoly, perfect competition
The objective of rent controls is to
A. encourage the construction of new rental units. B. ensure an adequate supply of rental housing for the poor. C. keep rents below levels that would be observed in a freely competitive market. D. raise revenue for the local government.