Under a regulatory fair price,
a. price is driven to zero
b. revenues would just be sufficient to cover costs
c. price is set equal to marginal revenue
d. profit is set at the monopoly level
e. revenues would be set equal to marginal cost
B
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The income paid to labor is called
A) rent. B) profit. C) interest. D) human capital. E) wages.
If the people who take early retirement are not counted in the working-age population, then
A) the unemployment rate would be lower. B) the labor force participation rate would be less. C) the unemployment rate would be higher. D) the labor force participation rate would be higher.
In the long run, in a competitive industry
a. economic profits are zero b. firms break even c. price equals average cost d. all of the above
Suppose a country with a large domestic textile industry removed all tariffs on imported textiles, we would expect domestic:
a. textile prices to decline. b. textile production to increase. c. textile employment to increase. d. textile prices to rise.