In the above figure, if this natural monopolist were forced to use marginal cost pricing, it would sell the product at the price
A) A.
B) C.
C) E.
D) F.
D
You might also like to view...
Studies show that the income elasticity of demand for wine is 5.03 and the income elasticity of demand for spirits is 1.21. This indicates that
A) wine is a luxury good and spirits are necessities. B) wine and spirits are luxury goods. C) wine is a luxury good and spirits are inferior goods. D) wine and spirits are highly price elastic.
If a professional sports athlete signs a new contract which defers compensation until years after she is retired, she is signaling
A) that she does not plan to shirk in the future, regardless of whether she did so in the past. B) that she did shirk and she will do so in the future. C) that she did shirk but won't do so in the future. D) that she didn't shirk and she won't do so in the future.
In the graph showing the Phillips curve after a positive supply shock, we can see that a positive supply shock would cause ______.
a. an increase in inflation rate and a decrease in unemployment rate
b. a decrease in inflation rate and an increase in unemployment rate
c. an increase in both inflation rate and unemployment rate
d. a decrease in both inflation rate and unemployment rate
Which of the following is assumed in time series regression?
A. There is no perfect collinearity between the explanatory variables. B. The explanatory variables are contemporaneously endogenous. C. The error terms are contemporaneously heteroskedastic. D. The explanatory variables cannot have temporal ordering.