Using average cost pricing, regulators of a natural monopoly
a. force the firm's economic profit to zero
b. maximize the firm's economic profit
c. achieve Pareto efficiency
d. set price equal to cost where the LRATC curve crosses the demand curve
e. set price equal to marginal cost where the MC curve crosses the demand curve
D
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Leaps in productivity growth experienced by China are attributed to
A. loans provided by the Asia Development Bank. B. a high savings rate, human and capital investment and foreign direct investment. C. foreign aid received from industrialized countries. D. the enforcement of intellectual property rights.
The law of supply states that, other things equal, when the price of a good falls, the quantity supplied falls as well
a. True b. False Indicate whether the statement is true or false
The Board of Governors
a. is chaired by the U.S. Secretary of the Treasury. b. members are elected by the U.S. public. c. has 7 members. d. All of the above are correct.
Normative analysis in a(n) ______ approach.
a. objective b. subjective c. positive d. empirical