A natural monopoly that is regulated to set price equal to marginal cost
A) makes an economic profit.
B) makes zero economic profit.
C) incurs an economic loss.
D) could make an economic loss, an economic profit, or zero economic profit.
E) makes zero normal profit.
C
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Acquiring information on a bank's activities in order to determine a bank's risk is difficult for depositors and is another argument for government
A) regulation. B) ownership. C) recall. D) forbearance.
If government forced a firm to charge a price equal to marginal cost in a situation where there are scale economies,
a. new firms would enter the industry. b. the firm would be forced to go bankrupt. c. positive economic profit would grow even larger. d. marginal cost would exceed average cost.
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.
Explain whether KB Homes' sales are likely to fluctuate more or less than the sales of each of the following firms as the economy moves from recession to expansion and back to recession
Whirlpool Corporation (appliance manufacturer) Taco Bell The Boeing Company (aircraft manufacturer) GameStop (video game sales and rentals) What will be an ideal response?