Gene's Car Wash is a natural monopoly. To wash 100 cars a week, if Gene is unregulated, he would charge a price of $10. Gene's average total cost for washing 100 cars is $8, his average variable cost is $6, and his marginal cost is $4
If Gene is regulated using a marginal cost pricing rule, the price he is allowed to charge to wash 100 cars is A) $10.
B) $8.
C) $6.
D) $4.
E) $400.
D
You might also like to view...
Refer to Figure 12-6. If Jason maximizes his profit he will produce the output rate indicated by point ________ and his average profit will equal ________
A) a; $3 B) b; $3 minus ATC at point b C) d; $3 minus ATC at point d D) e; $3 minus ATC at point e
A transfer payment is a payment by the government to an individual
A) for an investment good. B) for which the government does not receive a good or service in return. C) for a debt owed. D) for a service. E) for a consumption good.
The "WIN" button approach to breaking a wage-price spiral was proposed by President Ford to a joint session of Congress
a. True b. False Indicate whether the statement is true or false
If the Fed buys a T-bill from an individual rather than from a bank, the effect on the money supply is
a. smaller because there is no multiplier process. b. larger because of the multiplier process. c. the same. d. impossible to predict without knowing the value of the multiplier.