Suppose that a regulatory agency has imposed marginal cost pricing on a natural monopolist. We expect that
A) the firm will earn only a normal profit.
B) the firm's average total cost of production is rising over the relevant range of production.
C) the firm will rise its price above marginal cost.
D) the firm will earn economic losses.
Answer: D
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A single-price monopoly will set its price according to which of the following rules?
A) P = MR and MR = MC B) P = MC where the MC curve crosses the demand curve C) P = MR where the MR curve crosses the demand curve D) None of the above answers is correct.
In Alan Lakein's book How to Get Control of Your Time and Your Life, he states that daily time use should be directly related to:
a. Resources b. Goals c. Values d. Attitudes
In the very short-run period,
a. the price elasticity of supply is very elastic. b. the price elasticity of demand is very elastic. c. the cross elasticity of demand is very inelastic. d. income elasticity is very elastic. e. the price elasticity of supply is very inelastic.
To increase living standards, public policy should
a. ensure that workers are well educated and have the necessary tools and technology. b. make unemployment benefits more generous. c. move workers into jobs directly from high school. d. ensure a greater degree of equality, taking all income-earners into account.