Railroads have received significant attention from regulators because
A. railroads enjoy significant economies of scale.
B. conditions in the railroad industry are conducive to destructive competition.
C. regulators would like to ensure universal service to all potential railroad customers.
D. railroads are vulnerable to predatory pricing.
Answer: D
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Which characteristic would best be associated with perfect competition?
A. price takers B. product differentiation C. nonprice competition D. few sellers
So long as marginal cost is greater than average variable cost, both average variable cost and average total cost must increase as output is increased
Indicate whether the statement is true or false
Oligopoly is a situation when there
A) is one firm in the industry that is fairly large. B) are a few large firms in the industry. C) are too many firms in the industry and there is excess capacity. D) is one giant firm and many smaller firms forming a competitive fringe.
A long-run aggregate supply curve may graphically be represented as a
A. horizontal line. B. an upward sloping line. C. vertical line. D. a downward sloping line.