At a level of output when regulators require a natural monopoly to set a price that is equal to marginal cost, the firm
A) makes zero economic profit.
B) makes an economic profit.
C) incurs an economic loss.
D) makes a normal-economic profit.
E) makes either zero economic profit or an economic profit, depending on whether the firm's average total cost equals or is less than its marginal cost.
C
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Long-run equilibrium is characterized by zero profits in
A) monopolistic competition only. B) perfect competition only. C) both perfect competition and monopolistic competition. D) market structures in which there are barriers to entry.
Which of the following is true about transactional relationships?
a. They are cost driven and arm's length b. They are vital to profitability c. They need and expect efficient service d. They do not have resources to waste with inefficient transactions, processes, processes, or partners e. All of the above
Use the Application about the price of vanity license plates in Virginia to answer the following question(s).Recall the Application. Because the elasticity of demand for vanity plates is 0.26, then a decrease in the price of vanity plates will:
A. decrease total revenues. B. cause no change in the total revenues. C. increase total revenues. D. There is insufficient information to draw a conclusion.
Assuming the total population is 100 million, the civilian labor force is 50 million, and 47 million workers are employed, the unemployment rate is:
A. 3 percent. B. 6 percent. C. 7 percent. D. 53 percent.