If a regulator forced a natural monopolist to set P = MC
A. the monopolist would break even.
B. the monopolist would suffer economic losses.
C. the monopolist would earn economic profits.
D. the monopolist would earn monopolistic profits.
Answer: B
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The Value Added Tax (VAT) is
A. not often used in the United States. B. a percentage tax. C. added at each stage to production. D. all of these answer options are correct.
The main purpose of most tariffs and quotas is to
A) reduce the foreign competition that domestic firms face. B) improve the quality of goods and services imported into the country. C) raise revenue for the government. D) reduce the prices consumers pay for goods and services.
Which of the following is true? a. In equilibrium, with only two countries, the excess demand for loanable funds in one country will equal the excess supply of loanable funds in the other. b. Countries with net capital inflows tend to be few or no capital outflows
c. Capital flows will tend to decrease real interest rates in countries with a capital inflow. d. Both a. and c. are correct.
The relationship between industrial capacity percentage and
a. the unemployment rate is indirect. b. the unemployment rate is direct. c. real GDP is indirect. d. nominal GDP is indirect.