The outcome of regulating a natural monopoly using the marginal cost pricing rule is
A) that the firm makes a normal profit.
B) that the firm maximizes its profit.
C) that consumer surplus is less than what it would be if the firm maximized its profit.
D) an efficient level of production.
E) that the firm makes an economic profit.
D
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Cost-push inflation might initially result from
A) the use of new technology.
B) a decrease in the quantity of money.
C) an increase in the cost of resources.
D) an increase in the quantity of money.
E) an increase in government expenditure.
Suppose there is an increase in autonomous consumption. Specifically, suppose c0 increases where C = c0 + c1YD. This increase in autonomous consumption will cause which of the following to increase?
A) equilibrium income B) equilibrium disposable income C) demand D) all of the above E) none of the above
An In the News article is titled "Air Pollution Kills." The decrease in the length of human life is an example of
A. A private cost. B. An internal cost. C. An external cost. D. An external benefit.
A monopolist who has a ________ and perfectly price discriminates appropriates all consumer surplus as profit.
A. horizontal ATC schedule B. downward-sloping MR curve C. demand curve which is the same as its MR curve D. vertical ATC schedule