When breaking up a natural monopoly is not advisable
a. it should be left alone
b. government regulation should be used to set marginal revenue equal to marginal cost
c. government regulation should be used to set price equal to marginal revenue
d. government regulation should be used to set marginal cost equal to long-run average total cost.
e. public ownership and operation may improve efficiency
E
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If the economy is on the aggregate supply curve but to the right of the aggregate demand curve, which of the following will be the first market force to lead the economy toward an equilibrium?
a. At the current output level, prices will be too low and firms will increase their prices. b. At the current price level, output will be too low, inventories will diminish, and firms will increase their production. c. At the current output level, prices will be too low and firms will lower their prices. d. At the current price level, output will be too high and so prices will drop so that output will drop. e. At the current price level, output will be too high, inventories will pile up and firms will cut back on their production.
What will happen if there is an increase in an existing tariff on grapes from Argentina?
a. There will be an increase in domestic production of grapes. b. There will be an increase in total American consumption of grapes. c. There will be an increase in American consumption of domestically produced grapes. d. There will be an increase in American imports of grapes from Argentina.
At what level of output will average total cost increase?
a. when marginal cost is greater than average total cost b. when marginal cost is lower than average variable cost c. when marginal cost equals average variable cost d. when marginal cost equals average total cost
Which of the following is a positive incentive?
A. hiring 10 new workers as you decide to expand your operations B. deciding not to play golf due to rain C. making a donation to the Red Cross D. offering a reward to anyone who finds your missing pet