When an average cost pricing rule is imposed on a natural monopoly, ________
A) total surplus is maximized and the monopoly incurs an economic loss
B) the monopoly makes zero economic profit
C) the monopoly makes an economic profit
D) total surplus is maximized and the monopoly makes an economic profit
B
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The law of demand states that, other things remaining the same, the higher the price of a good, the
A) smaller is the demand for the good. B) larger is the demand for the good. C) smaller is the quantity of the good demanded. D) larger is the quantity of the good demanded.
The tit-for-tat strategy only works for a prisoner's dilemma that:
A. is repeated. B. is played only one time. C. does not have a Nash equilibrium. D. has only one Nash equilibrium.
A theory of taxation that states that citizens should bear tax burdens in line with their ability to pay taxes is the
A. benefits-received principle. B. equal payment principle. C. ability-to-pay principle. D. equity principle.
Write down your understanding and interpretation for each of the following equations, then make sure that you familiarize yourself with these formulas: NS = SP + SG = GDP – C – G, in a closed economy
What will be an ideal response?