Government regulators can achieve efficiency for a natural monopoly by setting a price ceiling equal to the intersection of the demand curve and the:
a. marginal revenue curve.
b. average cost curve.
c. marginal cost curve.
d. average fixed cost curve.
c
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Assume that GDP = $10,000 and the MPC = 0.75. If policy makers want to increase GDP by 30 percent, and they want to change taxes and government spending by equal amounts, how much would government spending and taxes each need to increase?
A) $300 B) $750 C) $1,000 D) $3,000
A firm built an inventory of 16-bit chips for $50,000 last year. However, the introduction of 32-bit chips lowers the market price for 16-bit chips and the inventory can only be sold for $40,000 now
What is the opportunity cost of the inventory of 16-bit chips? A) $50,000 B) $40,000 C) $10,000 D) $90,000
Which of the following is a probable consequence of the presence of accounting rules that allow firms to hide the financial impact of actions that would harm investors?
a. Investors may be able to enforce market efficiency. b. The WTO will disenfranchise the country that allows this to happen. c. Investors will immediately organize a speculative attack and the price of stocks will inflate. d. The balance-of-payments deficit will increase, leading the economy into a debt trap. e. Investors may not be able to adequately judge when the risk of investing in a firm rises.
Suppose a U.S. automobile manufacturer produced $200 million worth of automobiles in the United States in 2009, but $50 million worth went unsold. How much was the company's contribution to GDP?
a. $50 million b. $250 million c. $150 million d. $200 million e. -$150 million