Which of the following statements about natural monopoly is correct?
A. Governments regulate natural monopolies in order to keep their workers from earning wages that are too high.
B. Governments regulate natural monopolies in order to prevent them from making profits.
C. Governments regulate natural monopolies in order to ensure that costs of production are minimized.
D. Governments regulate natural monopolies in order to ensure that the firm earns a normal profit.
Answer: D
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A demand schedule
A) shows that demand is on schedule. B) is a graph showing a relationship between the quantity demanded and the price of a good. C) shows the quantity demanded at one price. D) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. E) shows how the demand changes when the supply changes.
If total revenue falls when output increases, marginal revenue is
A) positive. B) negative. C) zero. D) greater than total revenue. E) elastic.
If the marginal product of labor is less than the nominal wage divided by the price of output, a firm that wishes to maximize profits will
A) hire more labor. B) lay off workers. C) maintain its current level of workers. D) raise the real wage.
Which of the following groups had the highest percentage unemployed in February 2015?
a. new entrants b. job leavers c. job losers: temporary d. job losers: nontemporary