If the regulator require a natural monopoly set its price equal to its marginal cost, that would ensure
A) an economic profit for the firm.
B) zero economic profit for the firm.
C) an economic loss for the firm.
D) an accounting loss for the firms.
C
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The long run average cost curve may initially slope downward due to
A) decreasing average fixed costs. B) increasing marginal returns. C) economies of scale. D) All of the above.
Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium
a. True b. False Indicate whether the statement is true or false
A foot-Loofah is worth $15 to Edna. But she buys one on sale at Bath and Body works for just $8 what is the consumer surplus that results from Edna's purchase?
a. $8 b. $15 c. $7 d. $23 e. Cannot be determined from the information given.
Two basic determinants of investment spending are
A. expected returns and real interest rates. B. domestic trade and international trade. C. general price level and the level of output. D. consumer spending and government spending.