If profit regulation is used to control a natural monopolist, the monopolist is likely to
A. Reduce maintenance of plants and equipment.
B. Increase the quality of its product in an effort to increase sales.
C. Attempt to reduce the costs of production.
D. Inflate or pad the costs of production.
Answer: D
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How is economic profit calculated?
What will be an ideal response?
Cap Space
What will be an ideal response?
Economic resources in the capitalist system are brought together by:
A. labor unions. B. entrepreneurs. C. the managerial elite. D. government units.
In new growth theory, growth in real GDP per person occurs because
i. human capital grows indefinitely. ii. technology advances as a result of choices individuals make. iii. profit incentives encourage technological change. A) i only B) ii only C) iii only D) both i and iii E) i, ii, and iii