The problem with adopting a normal profit pricing policy for a natural monopoly is that ________.
A. profits will be positive
B. losses will be large and sustained
C. it is not allocatively efficient
D. it is allocatively efficient
Answer: C
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Exhibit 30-1
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Federal government budget deficits
A. tend to increase when the economy enters a recession. B. have tended to increase in the majority of years since 1980. C. have caused a growing national debt. D. have all of these characteristics.
Recall the Application about the opportunity cost of an entrepreneur to answer the following question(s).According to this Application, which of the following is currently a popular way to earn an income?
A. renting out your home through Airbnb B. selling your kidneys C. driving your car through Uber D. cleaning other people's homes
Land suitable for growing wheat can also be used to farm dairy cattle. Therefore, from the farmer's perspective, an increase in the price of wheat tends to
A) reduce the demand for wheat. B) increase the demand for dairy cattle. C) decrease the cost of farming dairy cattle. D) increase the cost of farming dairy cattle.