If regulation imposes marginal cost pricing on a natural monopoly, then the monopoly will:
A. suffer persistent economic losses.
B. earn a fair, but not excessive, return on its assets.
C. produce too little output to achieve efficiency.
D. experience diseconomies of scale.
Answer: A
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When housing prices fell as they did beginning in 2006 following the housing market bubble, most banks and other lenders ________ the requirement for borrowers, making it ________ for potential home buyers to obtain mortgages
A) tightened; harder B) eased; easier C) eased; harder D) tightened; easier
The Board of Governors of the Federal Reserve System is responsible for
a. approving changes in the discount rate. b. controlling monetary policy. c. administering discount lending. d. Both a and b e. All of the above
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a. True b. False Indicate whether the statement is true or false
Suppose Fernando allocates his lunch money to pizza and Coke. A Coke costs $1 and a slice of pizza costs $1.50 . The marginal utility of the last slice of pizza Fernando ate was 30, and the marginal utility of his last Coke was 25 . Fernando spent all of his lunch money. From this information, we can conclude that
a. Fernando allocated his money in a way that maximized his total utility b. Fernando's total utility would have been higher if he had purchased more Coke and less pizza c. Fernando's total utility would have been higher if he had purchased more pizza and less Coke d. Fernando could have increased his total utility by purchasing more Coke but the same quantity of pizza e. Fernando could have increased his total utility by purchasing more pizza but the same quantity of Coke