In the above figure, if this natural monopolist were forced to use marginal cost pricing, it would produce
A) at Q1 output rate.
B) at Q2 output rate.
C) at Q3 output rate.
D) past the Q3 output rate.
C
You might also like to view...
If a 4 percent change in the price of a good leads to a 3 percent change in quantity demanded, the price elasticity of demand equals
A) 1.33. B) 0.75. C) 4.00. D) 3.44. E) None of the above answers is correct.
When the price of a good changes but the price of the only other good bought by a consumer stays constant, his
A. budget line shifts. B. indifference curves shift. C. budget line changes slope. D. indifference curves change slope.
Inefficiency in an economy can be caused by
a. misallocating resources. b. underemploying resources. c. discrimination. d. All of the above are correct.
"To each exactly the same" refers to
A) the productivity standard. B) the free market doctrine. C) the egalitarian principle. D) the ceteris paribus assumption.