The above figure illustrates a perfectly competitive firm. Curve B represents the
A) MR curve.
B) ATC curve.
C) MC curve.
D) AVC curve.
E) AFC curve.
C
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If a natural monopoly is regulated using the marginal cost pricing rule, how does the regulation affect prices, outputs, profits, and the distribution of surpluses? What are the pros and cons to this method of regulation?
What will be an ideal response?
The bank reserve equation is the
A) assets and liabilities of the entire banking system. B) tally sheet for sources and uses of reserves. C) M1 multiplier. D) Federal Reserve's method of determining how many government securities to purchase.
If a market is controlled by a perfect-price-discriminating monopoly, then
A) a deadweight loss is generated. B) there is no consumer surplus. C) consumer surplus is the same as under perfect competition. D) output is less than that of a single-price monopoly.
If British real GDP fell, there would be
a. a rightward movement along the supply of British pounds curve in the dollar-pound market b. a leftward movement along the supply of British pounds curve in the dollar-pound market c. an increased supply of British pounds to the dollar-pound market d. a decreased supply of British pounds to the dollar-pound market e. the tendency for the supply of British pounds curve to become steeper in the dollar-pound market