Managers of a natural monopoly regulated using rate of return regulation have an incentive to
A) exaggerate the firm's costs.
B) underestimate the firm's costs.
C) minimize the monopoly's deadweight loss.
D) make zero economic profit.
E) exaggerate the firm's profit.
A
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The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 100 billion kilowatt hours are produced is
A) 5¢ per kilowatt. B) 10¢ per kilowatt. C) 15¢ per kilowatt. D) 20¢ per kilowatt. E) 0¢ per kilowatt.
There are 9 firms in an industry with market shares in the table above. Calculate the HHI for the industry. What kind of market does this operate in and why?
What will be an ideal response?
Economies of scale mean that Amazon has advantages in ______ over small, local merchants.
a. customer service and goodwill b. cost savings in ordering, inventory, and checkout c. employee satisfaction and retention d. creativity and novelty
The size of the customer population interested in buying subcompact cars increases by 20 percent during a year. This example shows a change in what PYNTE factor?
a. P b. T c. N d. E