If an inefficient public monopoly cannot provide a service at a price that sufficient numbers of people are willing to pay it:
A. must shut down and leave the industry in the long run.
B. can remain in operation by covering its losses with revenue from taxes.
C. will seek out more efficiencies.
D. should expand operations until demand is satisfied.
Answer: B
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A) increase; right B) increase; left C) decrease; right D) decrease; left
Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets b. loggers clear-cut a tract of land when paying a fixed fee rather than when paying per tree felled c. Drivers of heavier, safer cares are less likely to run stop signs d. workers on commission work harder than those paid an hourly wage
What is total revenue for a firm?
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What are the main features of the Celler-Kefauver Act?
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