Which of the following is NOT a reason for the government to regulate a nonmonopolistic industry?
A) to allow firms to achieve the profit maximizing output
B) asymmetric information
C) to protect consumer interests
D) market failures
Answer: A
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The above figure shows the labor market in an undeveloped nation. A minimum wage has an effect on the market for low-skilled labor if it is set at
A) $2.00. B) $3.00. C) $4.00. D) all of the above
The figure above shows a monopoly firm's demand curve. At point u in the figure, the demand facing the monopoly is
A) elastic. B) unit elastic. C) inelastic. D) less than the supply.
When the Fed buys government bonds, the reserves of the banking system
a. increase, so the money supply increases. b. increase, so the money supply decreases. c. decrease, so the money supply increases. d. decrease, so the money supply decreases.
Refer to Figure 7.2. If Happy Times Theater charges one price to day customers and another price to night customers, then its total profit on the sale of tickets will
A. stay the same. B. vary according to the slope of marginal revenue curve. C. increase. D. decrease.