If a natural monopolist is unregulated, then
A) the monopoly will produce efficiently from society's point of view.
B) the monopoly will produce inefficiently from society's point of view.
C) the monopolist will be earning just a normal rate of return on investment.
D) the monopolist will determine the profit maximizing quantity by equating marginal cost to the demand curve.
Answer: B
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A monopoly that is maximizing profits never operates in the ________ portion of the demand curve
A) unitary elastic B) elastic C) inelastic D) horizontal
If gas prices today were $1.00 per gallon, in terms of history, this would be
A. an all-time low in nominal terms. B. an all-time low in inflation-adjusted terms. C. not an all-time low but rather low in inflation-adjusted terms. D. about the long-term historical average in inflation-adjusted terms.
The technique used to calculate the CPI implicitly assumes that consumers buy
A) relatively more of goods with relative prices that are increasing. B) goods and services whose quality improves at the rate of growth of real GDP. C) relatively less of goods with relative prices that are decreasing. D) more computers and CD players and fewer black -and-white TVs. E) the same relative quantities of goods as in a base year.
What does willingness to pay measure?
a) the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it b) the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept c) the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept d) the maximum amount that a buyer will pay for a good