In practice, regulatory boards try to set the price of a natural monopoly so that price:
A. equals marginal cost.
B. covers all explicit costs.
C. is constant over time.
D. includes all costs plus a normal return on capital investment.
Answer: D
You might also like to view...
Based on the information in the above table, what is the labor force participation rate?
What will be an ideal response?
Principal-agent problems are less likely to arise
a. if it is easy for principals to know agents' actions and if there is less conflict between their goals b. if it is difficult for principals to know agents' actions and if there is less conflict between their goals c. if it is easy for principals to know agents' actions and if there is some difference in their goals d. if it is difficult for principals to know agents' actions and if there is some difference in their goals e. if agents have higher incomes
When output rises, unemployment
a) remains unchanged. b) falls. c) rises by a small amount. d) rises by a large amount.
Cross price elasticity measures
A. How complements and substitutes differ from one another. B. How sensitive quantity demanded is to a change in price. C. The change in quantity demanded for one good relative to a change in the price of another good. D. The change in quantity demanded when income changes.