In the above figure, if this natural monopolist were regulated and allowed to earn a "fair" rate of return, it would sell the product at the price
A. C.
B. F.
C. A.
D. B.
Answer: A
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Is cutting down a tree in two hours with an ax more efficient than cutting it down in ten minutes with a gasoline-powered chain saw?
A) No, because time is valuable. B) Yes, because hand tools conserve nonrenewable energy resources. C) It could be, if the person cutting down the tree places a high enough value on the exercise. D) There is no way to answer the question.
When a person throws a cigarette out of a car window and starts a brush fire, this is
A) an example of an external benefit. B) an example of an external cost. C) an example of a public good. D) an example of market power.
Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. What is Larry's economic surplus from attending State College instead of his next best alternative?
A. $10,000 B. $5,000 C. $40,000 D. $20,000
The Fed's actions influence real GDP by changing expenditure plans. Other things remaining the same the lower the real interest rate, the ________ is the amount of consumption expenditure and the _______ is the amount of saving.
Fill in the blank(s) with the appropriate word(s).