Which of the following involves a regulator setting a price that a firm cannot exceed for a few years?
a. Price cap regulation
b. Cost-plus regulation
c. Regulatory capture
d. Exclusive dealing
a. Price cap regulation
Price cap regulation involves a regulator setting a price that a firm cannot exceed for a few years.
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Other things remaining the same, the greater the expected profit
A) the less the amount of investment. B) the greater the amount of investment. C) the steeper is the investment demand curve. D) the flatter is the investment demand curve.
Refer to Table 2-16. Estonia has a comparative advantage in the production of
A) cell phones. B) both products. C) lumber. D) neither product.
The World Bank primarily issues loans in order to
A) promote long-term development and growth in a developing nation. B) ensure long term stability within a banking system. C) be the global lender of the last resort in the case of financial crisis. D) maintain the IMF conditionality rules.
All of the following are true for a monopsonist except
A. The demand for labor is the same as the marginal revenue product of labor. B. The derived demand for labor is downward-sloping. C. The market demand for labor is upward-sloping. D. The marginal factor cost for labor exceeds the wage rate.