Refer to the diagram for a natural monopolist. If a regulatory commission were to set a maximum price of P 3 , the monopolist would:
A. maximize profits.
B. increase output beyond the profit-maximizing level.
C. reduce output below the profit-maximizing level.
D. be unable to make a normal profit.
A. maximize profits.
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In explaining internally induced cycles, changes in investment and changes in national income are
a. independent of each other b. mutually reinforcing c. unrelated to the income multiplier d. rarely moving in the same direction e. dependent on changes in population
The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009,
a. expanded the reserves available to the banking system, leading to a rapid increase in the M1 money supply as banks used the reserves to extend additional loans. b. reduced the reserves available to the banking system, leading to a sharp reduction in outstanding loans and a decline in the M1 money supply. c. expanded the reserves available to the banking system, but the M1 money supply increased slowly because the banks enlarged their excess reserves. d. reduced the reserves available to the banking system, leading to a substantial increase in outstanding loans and the M1 money supply.
Evaluate the following statement: "Advertisements that use celebrity endorsements are devoid of any value and do not enhance the efficient functioning of markets."
Many conservative economists want to __________ the minimum wage.
A. raise B. lower C. abolish