Why is regulation necessary to achieve "universal service"?
Universal service refers to making a service available to all, even if it is unprofitable to include all customers. Regulated companies can make up losses from universal service by making above-normal profits from other products or customers. Regulation must prevent entry into these higher profit lines, or cream skimming by competitors will leave the firm offering universal service at a loss.
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If the total cost of producing 20 units of output is $1,000 and the average variable cost is $35, what is the firm's average fixed cost at that level of output?
A) $65 B) $50 C) $15 D) It is impossible to determine without additional information.
The Haig-Simons definition of income
A. is measured over a given time. B. measures an individual's power to consume. C. is a net change measure. D. all of these answer options are correct.
According to the Solow model of economic growth, if per capita savings, s (Y/N)0, exceeds required steady state investment, (n + d) K/N, then
A) per capita output declines. B) capital per capita increases. C) capital per capita decreases. D) steady state growth characterizes the economy.
Which of these is NOT one of the issues that makes it difficult for the Fed to choose the right course of action at the right time?
A. The Fed's incomplete and imperfect control of the money supply B. The quality of the data the Fed uses C. The time that it takes for the Fed to decide on a course of action D. The time it takes for Fed action to have an impact