When a regulator allows a monopolist to set its price equal to long-run average cost, the regulator is practicing
A) marginal cost pricing.
B) operating cost pricing.
C) average cost pricing.
D) optimal cost pricing.
Answer: C
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The costs affecting decisions to supply goods and services are always
A) average costs. B) costs not yet incurred. C) sunk costs. D) total costs. E) unavoidable costs.
Refer to the above figure. If the marginal cost curve for pollution abatement shifts to the right, everything considered, the
A) degree of air quality or cleanliness will also decrease. B) the degree of air quality or cleanliness will stay unchanged. C) the degree of air quality will improve. D) the marginal cost of pollution abatement has nothing to do with air quality.
Which of the following would not account for the observed wage differential between African Americans and whites in the United States?
a. differences in the quantity of on-the-job training b. differences in the quality of education c. discrimination by employers d. differences in job experience e. differences in access to public assistance programs
One concern over external national debt is that interest and principal payments transfer wealth overseas. The percentage of the national debt held in recent years by foreigners is approximately:
a. 5 percent. b. 10 percent. c. 20 percent. d. 30 percent. e. 50 percent.