Rate of return regulation will
a. always result in the firm producing the quantity that would be produced if the market were competitive.
b. always result in the firm producing less than the quantity that would be produced if the market were competitive.
c. always result in the firm producing more than the quantity that would be produced in a competitive industry.
d. result in a new equilibrium with either more or loss produced in comparison to a competitive market.
d. result in a new equilibrium with either more or loss produced in comparison to a competitive market.
You might also like to view...
In the short run, a profit-maximizing firm's decision to produce should be guided by whether
A) its total revenue exceeds its fixed cost. B) its total revenue covers its variable cost. C) it makes a profit. D) its marginal profit is maximized.
Referring to the above graphic, which of the following statements is FALSE?
A) In panel (a), a competitive situation is shown in which equilibrium is established at the intersection of D and S at point E. B) In panel (a), the equilibrium price is Pe and the equilibrium quantity Qe. C) The price the monopolist charges in panel (b) at Pm is lower than the price that the competitive producer charges. D) The monopolist produces at Qm, and charges a price ofPm, while maximizing profits at the intersection of MC and MR.
In the open-economy macroeconomic model, the market for loanable funds equates national saving with
a. domestic investment. b. net capital outflow. c. the sum of national consumption and government spending. d. the sum of domestic investment and net capital outflow.
What do economists call the factor payments that go to capital?
a. wages b. rent c. interest d. deposits