If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
A) will earn higher economic profits.
B) will earn an economic loss.
C) will expand its output.
D) will experience a rise in long-term average costs.
B
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The potential problem with competitive pricing regulation of a natural monopoly is that ________.
A. P < MR B. P < ATC C. P < AVC D. P < MC
The consumption function has a negative slope
a. True b. False Indicate whether the statement is true or false
Briefly describe revealed preference and stated preference as means of determining the value of a statistical life.
What will be an ideal response?
Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.AssetsLiabilities & Net WorthReserves$27,000 Checkable Deposits$110,000Loans50,000 Stock Shares200,000Securities33,000 Property200,000?Refer to the above data. Assuming the bank loans out all of its remaining excess reserves as a checkable deposit, and has a check cleared against it for that amount, its reserves and checkable deposits will now be:
A. $32,000 and $115,000 respectively. B. $22,000 and $110,000 respectively. C. $25,000 and $122,000 respectively. D. $22,000 and $105,000 respectively.