"Cream skimming" usually results in
a. cross-subsidization of markets.
b. subsidies to rural consumers of the service.
c. regulations to provide universal service.
d. monopoly.
c
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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.
Explain why state governments may charge a fee for beach access to address the commons problem
What will be an ideal response?
Gross domestic product is the total dollar value at current prices of all final and intermediate goods produced by a nation during a given time period
a. True b. False Indicate whether the statement is true or false
Monopoly is a prime example of a market failure that leaves potential Pareto improvements unexploited. This is demonstrated by the fact that
a. monopolies produce public goods rather than private goods b. monopolies substitute excludability for rivalry c. monopolies substitute rivalry for excludability d. the price in a monopolized market is less than the marginal cost of production e. the price in a monopolized market exceeds the marginal cost of production