A marginal cost pricing rule for a natural monopoly sets ________
A) price equal to marginal cost and greater than average total cost
B) marginal revenue equal to marginal cost
C) marginal revenue equal to average total cost
D) price equal to marginal cost
D
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Refer to Table 5.1. Does either Andrea or Hector have an absolute advantage and if so, in what product?
A) Andrea only has an absolute advantage in producing bracelets. B) Hector only has an absolute advantage in producing bracelets. C) Andrea has an absolute advantage in producing both products. D) Hector only has an absolute advantage in producing tiaras.
Both demand and supply curves usually have positive slopes
a. True b. False Indicate whether the statement is true or false
Which of the following is a problem that keeps people from privately solving externality problems?
a. Each party involved holds out for a better deal. b. The externality is large. c. Only problems with a sufficiently large number of parties can be solved. d. There is a lack of government intervention.
The type of labor agreement that requires workers to be union members prior to being considered for employment is a
A. right-to-work agreement. B. open-shop agreement. C. closed-shop agreement. D. union shop agreement.