A regulated natural monopoly is allowed to set a price which will enable it to earn an above-normal profit
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose the nominal interest rate is 15% and the rate of inflation is 3%. The real interest rate is therefore
A) 3%. B) 5%. C) 12%. D) 18%.
If the money supply is $600 and nominal income is $3,000, the velocity of money is
A) 1/50. B) 1/5. C) 5. D) 50.
What three factors did Keynes identify that affect consumption expenditures?
a. Disposable income, expected future income, and wealth or credit b. Total income, expected future income, and wealth or credit c. Disposable income, inflation rate, and wealth or credit d. Total income, expected future income, and inflation rate
Which of the following involves either the buyer or the seller of a product having more information about the quality or price of the product than the other party?
a. Asymmetric information b. Imperfect information c. Risk assessment d. Adverse selection