Consumers may not experience the benefits of economies of scale if a natural monopoly:
A.) Raises price and fails to pass cost savings on to consumers.
B.) Engages in marginal cost pricing.
C.) Raises output beyond efficient levels.
D.) Is regulated by the government.
A.) Raises price and fails to pass cost savings on to consumers.
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Scarcity raises both price and marginal utility but generally reduces total utility.
Answer the following statement true (T) or false (F)
What is social capital, and how is it connected to economic development?
What will be an ideal response?
The recession that became the Great Depression began
A) two months prior to the stock market crash of 1929. B) with the stock market crash of 1929. C) one year after the stock market crash of 1929. D) with the banking panics of the early 1930s.
A difficulty with using a uniform per-unit tax to address a negative externality is that
A) the tax will reduce output. B) the tax will increase price. C) the social cost of pollution might vary across geographic regions. D) the social cost of pollution should not be assessed on the consumers, but should be assessed on the firms.