The main purpose of industrial regulation is to:
A. lower price to marginal cost.
B. lower price to average total cost such that the firm earns a fair return.
C. break monopolies into competing firms.
D. reduce X-inefficiency.
Answer: B
You might also like to view...
Which of the following best explains why you are more likely to see a poor person than a wealthy person picking up aluminum cans to sell?
A. The opportunity cost of picking up cans is higher for wealthy people than for poor people. B. Wealthy people do not care about the environment. C. Wealthy people are more aware of diseases transmitted through litter than are poor people. D. Wealthy people are more concerned about their public image than are poor people.
If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively efficiently
A) more resources should be used to produce computers. B) fewer resources should be used to produce computers. C) if the marginal benefit exceeds the marginal cost by as much as possible, the efficient amount of resources are being used to produce computers. D) None of the above is correct because marginal benefit and marginal cost have nothing to do with using resources allocatively efficiently.
Based on the following information, what is the balance on the current account?
Exports of goods and services = $5 billion Imports of goods and services= $3 billion Net income on investments = -$2 billion Net transfers = -$2 billion Increase in foreign holdings of assets in the United States = $4 billion Increase in U.S. holdings of assets in foreign countries = -$1 billion A) -$2 billion B) $1 billion C) $3 billion D) $4 billion
In terms of overall welfare, dumping is good for the importing country
Indicate whether the statement is true or false