If a regulatory agency forces a natural monopolist to stop charging monopoly prices and start charging competitive prices,
a. taxpayers will have to subsidize the firm
b. price will fall below AVC
c. the monopolist will shut down
d. stockholders will benefit
e. quantity produced will increase
E
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Zero correlation between two variables implies that:
A) change in one variable causes the other to change. B) both variables move in the same direction. C) the variables are not related to each other. D) both variables move in the opposite direction.
Refer to the figure above. Which of the following is true?
A) Firm 2 should follow Strategy X if Firm 1 follows Strategy X. B) Firm 2 should follow Strategy Y if Firm 1 follows Strategy Y. C) Firm 2 should follow Strategy X if Firm 1 follows Strategy Y. D) Firm 1 should always follow Strategy X.
Which of the following would shift the AS curve downward?
a. A decrease in the price level b. A decrease in world oil prices. c. An increase in world oil prices. d. A natural disaster that raises unit costs for all firms. e. A loss of technological capability.
Refer to the graph shown. A firm can produce the same amount of output at points:
A. B and C. B. E and C. C. A and C. D. A and B.