Refer to the graph below for a pure monopoly. If the government regulated the monopoly and made it charge the socially optimal price, this price would be:
A. Higher than the profit-maximizing price
B. Higher than the fair-return price
C. Lower than both the fair-return price and the profit-maximizing price
D. Between the fair-return price and the profit-maximizing price
C. Lower than both the fair-return price and the profit-maximizing price
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Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of cowboy hats is $50, how many hats will be produced?
A) 0 B) 1 C) 2 D) 4
If it's possible to eliminate the problems created by externalities, why do they persist?
A. The benefits of correcting the externalities generally exceed the costs. B. Correcting externalities would always reduce total surplus. C. It is difficult to measure external benefits and costs. D. None of these statements is true.
________ is (are) paid regardless of a person's income from other sources and regardless of assets.
A. The earned income tax credit B. Unemployment benefits C. Medicaid D. SNAP benefits
From a microeconomic perspective, the relatively low U.S. household saving rate contributes to an increasing inequality of wealth resulting from:
A. the higher saving rate of low-income households. B. the higher national saving rate. C. the lower saving rate of low-income households. D. the lower national saving rate.