One type of regulatory practice common for public utilities is setting a price for consumers based on the average cost of production plus the normal rate of profit expected; this is known as what kind of regulation?

a. Cost-plus regulation
b. Price cap regulation
c. Bundling regulation
d. Antitrust regulation


a. Cost-plus regulation

Economics

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Figure 10-1


If the profit-maximizing firm depicted in Figure 10-1 is perfectly competitive, how much output should it produce?

a.
A

b.
B

c.
C

d.
D

Economics

The consumption function will shift with

A) a decrease in real disposable income. B) a change in saving. C) a change in household wealth. D) an increase in real disposable income.

Economics

A depreciation in the value of the U.S. dollar would:

A. encourage foreigners to travel on American owned airlines. B. make U.S. goods more expensive to foreign consumers. C. decrease the number of dollars it takes to buy a Swiss franc. D. make it more expensive for U.S. citizens to travel abroad.

Economics

Economic analysis that focuses on the economy as a whole is called

a. macroeconomics b. microeconomics c. positive economics d. normative economics e. macrometrics

Economics