Regulators employ average cost pricing instead of marginal cost pricing because
A) average cost pricing is more efficient than marginal cost pricing.
B) price must be high enough to cover all opportunity costs if the firm is to stay in business.
C) the price is lower with average cost pricing.
D) average cost pricing is simpler to compute than marginal cost pricing.
Answer: B
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At point S, the economy is operating at approximately _______ unemployment?
The Federal Trade Commission is charged with:
a. supervising cartels in the United States. b. aiding small business in contract negotiations with foreign companies. c. investigating unfair and deceptive trade practices. d. approving contracts between businesses and government. e. bringing criminal complaints.
Reducing involuntary unemployment:
a) Helps the economy move on to the Production Possibility Frontier b) Helps shift the economy's Production Possibility Frontier inwards c) Helps the economy move along its Production Possibility Frontier d) Helps the economy move inside the Production Possibility Frontier
A change in monetary policy affects
A) consumption expenditure, government expenditures on goods and services, and net exports. B) consumption expenditure, productivity, and net exports. C) government expenditures on goods and services because it affects the government's budget balance. D) consumption expenditure, investment, and net exports. E) investment, government expenditures on goods and services, and net exports.