Average cost pricing for a natural monopoly will results in ______.
a. the socially efficient level of output
b. a less than socially efficient level of output
c. a greater than socially efficient level of output
d. the firm suffering economic losses
e. the firm earning economic profit
Ans: b. a less than socially efficient level of output
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An expansionary fiscal policy makes the exchange rate appreciate
a. True b. False Indicate whether the statement is true or false
If actual output exceeds potential output, the short-run aggregate supply curve shifts downward over time.
Answer the following statement true (T) or false (F)
Protectionism
A principal reason that purchasing power parity does not hold exactly in practice is
A) that foreign and domestic assets are not perfect substitutes. B) the existence of non-traded goods. C) that consumers in different countries have different preferences. D) that costs of production are not the same in all countries.