Under the average-cost pricing policy, a regulated monopolist is guaranteed a normal economic profit even if there is a change in its cost of production.
Answer the following statement true (T) or false (F)
True
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Concord Piano Company has experienced a sustained pattern of losses because fewer people are buying pianos for their homes. In response, the owner of Concord has reduced the number of pianos it manufactures. Which of the following is suggested by the actions of Concord?
a. Concord is reducing its marginal costs. b. Concord is preparing to exit the market. c. Concord has reached the shutdown point. d. Concord is evaluating its allocative efficiency.
Spending on R&D among a group of firms is equally likely to increase or to decrease
a. True b. False Indicate whether the statement is true or false
Money as a medium of exchangeI.Facilitates the exchange of goodsII.Reduces the incentive to barter
A. I only B. II only C. Both I and II D. Neither I nor II
An example of a consumption tax is
A) an income tax. B) transfer payments. C) the Social Security tax. D) a sales tax.