The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. If Light-U-Up is regulated, what is its economic profit if it must follow an average cost pricing rule?
A) -$60
B) -$20
C) $0
D) $30
C
You might also like to view...
When a resource used in the production of a good sold in a competitive market is available in only limited quantities, the long-run supply curve is likely to be upward sloping
a. True b. False Indicate whether the statement is true or false
The maximum price that a buyer is willing to pay for a good measures his
A) consumer surplus. B) marginal benefit. C) willingness to pay. D) producer surplus.
Which of the following would result from an increase in the demand for a good?
A. Both equilibrium price and quantity would rise. B. Both equilibrium price and quantity would fall. C. Equilibrium price would rise, and equilibrium quantity would fall. D. Equilibrium quantity would rise, and equilibrium price would fall.
In Rajasthan, India teachers in half of the community's schools were asked to have their pictures taken with their children, and this evidence of attendance fed into the compensation of the teacher. The result of this experiment was that teacher absentee rates ________ relative to classrooms in which no cameras were introduced.
A. fell to zero B. actually increased C. did not change D. were cut in half