Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, deadweight loss is equal to
A) $5 million.
B) $0 million.
C) more than $10 million and less than $20 million..
D) $20 million or more.
A
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The above figure shows the market for steel ingots. What is the total surplus under social optimum?
A) $2500 B) $5000 C) $6500 D) Not enough information.
What is the purpose of antitrust legislation?
What will be an ideal response?
Life insurance companies require that prospective policy holders have a medical check?up before the companies will sell the policy because of a(n) ________ problem in which the insured could be ________ than expected.
A. adverse selection; healthy and live longer B. adverse selection; unhealthy and die sooner C. moral hazard; unhealthy and die sooner D. moral hazard; healthy and live longer
Explain how an easing of monetary policy works through the exchange rate and what potential impact on the economy this would have.
What will be an ideal response?