If a marginal cost pricing rule is imposed on the natural monopoly shown in the figure above, then the deadweight loss will equal
A) $0.
B) $4 million.
C) $8 million.
D) $12 million.
A
You might also like to view...
According to the shortsightedness effect, politicians tend to favor projects with:
a. short-run benefits and short-run costs. b. short-run benefits and long-run costs. c. long-run benefits and short-run costs. d. long-run benefits and long-run costs.
If an unregulated monopolist operates in a market, then: a. customers will pay higher prices than if the market were competitive
b. customers will purchase fewer units of output than if the market were competitive. c. society will not be allocating its resources efficiently. d. all of the above will occur.
We have had a downward trend in the unemployment rate since the 1980's until the increase occurring in
A. 1991. B. 2001. C. 2007. D. 2009.
Opportunity cost can best be defined as
A. the value of the next-highest-ranked alternative. B. the value of all of the alternatives sacrificed. C. the interest cost of financing a business loan at the bank. D. There is no real definition for opportunity cost.