A rule that specifies the highest price that a regulated firm is permitted to set is called
A) rate of return regulation.
B) price cap regulation.
C) maximum price regulation.
D) average/marginal cost pricing.
B
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If positive externalities are present in the production of a good, then society will:
a. produce too much of the good since the marginal private benefit to consumers is less than the marginal social benefit. b. produce too little of the good since the marginal private benefit to consumers is greater than the marginal social benefit. c. produce too much of the good since the marginal private benefit to consumers is greater than the marginal social benefit. d. produce too little of the good since the marginal private benefit to consumers is less than the marginal social benefit.
If I = $2,000 . G = $4,000 . T = $1,000 . NX = $0, autonomous consumption = $1,000 and the marginal propensity to consume is 0.6, what is the equilibrium value of output?
a. $16,000 b. $7,000 c. $6,400 d. $3,840 e. $8,000
What effect do unions have on the labor market?
a. higher wages and fewer workers b. higher wages and more workers c. lower wages and fewer workers d. lower wages and more workers
Refer to the information provided in Table 8.1 below to answer the question(s) that follow.
Table 8.1 
Refer to Table 8.1. In the short run, if the price of labor (L) is $5 per unit, the price of capital (K) is $10 per unit, and firms attempt to minimize costs, then this firm's total cost of producing one unit of output is
A. $100. B. $120. C. $220. D. indeterminate from this information.