In the above figure, if the natural monopoly is regulated using a marginal cost pricing rule, then the firm will
A) produce 8 million units and make an economic profit of $24 million.
B) produce 12 million units and make zero economic profit.
C) produce 16 million units and incur an economic loss of $64 million.
D) produce 16 million units and make zero economic profit.
C
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Firm ownership in the United Kingdom is largest for
A) individuals. B) financial institutions ? agents. C) financial institutions ? ownership/control. D) nonfinancial corporations.
If compared against other criteria for evaluating the public interest, the social welfare function is most comparable to _____
a. utilitarianism b. the Pareto criteria c. the potential compensation criterion d. cost-benefit analysis
Once the national health care program goes into effect, we can expect
A) the quantity of health care services supplied will increase. B) total expenditures on health care will decrease. C) more individuals will pay more out of pocket expenses. D) moral hazard will increase.
A tariff is
A) a subsidy granted to importers of a vital input. B) a tax imposed by a government on goods imported into a country. C) a limit placed on the quantity of goods that can be imported into a country. D) a health and safety restriction imposed on an imported product.