In average cost pricing, the natural monopoly would have to set price equal to
A) AFC.
B) AVC.
C) ATC.
D) MC.
C
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Incentive-based regulations:
a. set an environmental goal, but are flexible on how to achieve the goal. b. obtain more efficiency gains is obtainable from CAC regulations. c. effluent taxes are an example of incentive-based regulations. d. all of the above are true. e. none of the above are true.
Compared to two-party systems, proportional-representation systems are thought to:
A. lead to more centrist policies. B. offer a wider variety of platforms among which voters can choose. C. create unwieldy combinations of policies within one platform. D. be much less efficient and lead to very few compromises when voting.
By being responsible for their actions
A) moral hazard becomes asymmetric information. B) employees are being given a property right. C) employees find it easier to free ride on the performance of others. D) the stock market is selling the claims of agents.
The marginal labor cost curve for a monopsonist
a. is equal to the supply curve of labor b. lies above the supply curve of labor c. lies below the supply curve of labor d. is affected by the fact that workers are less willing to work than under conditions of perfect competition e. is lower than the marginal revenue product of labor in equilibrium which assures the monopsonist a return to monopoly power