The use of a two-part price in a regulated natural monopoly
A) maximizes the deadweight loss.
B) allows the firm to maximize profits.
C) may make it possible for the firm to obey a marginal cost pricing rule and not go out of business.
D) All of the above answers are correct.
C
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The ability to produce a good using fewer resources than someone else is called
A) absolute advantage. B) comparative advantage. C) specialization. D) protectionism.
Options on individual stocks are not listed on the
A) New York Stock Exchange. B) American Stock Exchange. C) Nasdaq. D) Pacific Stock Exchange.
A patent
A) always gives rise to a monopoly. B) may not provide a barrier to entry. C) allows the patent owner to capture all of the consumer surplus. D) increases total welfare.
"A positive economic statement is always true and a normative economic statement is always false." Do you agree or disagree with this statement? Explain
What will be an ideal response?