Which of the following statements regarding economic regulation is TRUE?
A) Economic regulation has failed by insisting that firms must be allowed to earn a normal rate of return.
B) Rate-of-return regulation has been much more effective than cost-of-service regulation.
C) Economic regulation deals only with rates of return, and not with prices.
D) Economic regulation deals mainly with prices firms charge, but firms can alter their return by altering quality of service, effectively raising the price per constant-quality-unit.
Answer: D
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Universal servicemeans that one company provides service to all consumers, everywhere.
Answer the following statement true (T) or false (F)
Total cost is
A) \TFC - TVC. B) TFC/TVC. C) TFC + TVC. D) AFC + AVC.
Table 17.1Refer to Table 17.1. If the price of output is $10 per unit, the marginal revenue product of the third unit of labor is:
A. $50. B. $60. C. $500. D. $600.
What is the firm's contribution margin?
a. $1800 b. $800 c. $1000 d. $300