Under marginal cost pricing by a natural monopoly,
a. price is less than average cost
b. there will be a welfare cost.
c. the producer will earn a higher than normal rate of return.
d. there is little or no incentive for the producer to hold down costs.
a
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Which of the following is the most important advantage of using money rather than relying exclusively on barter?
A) The use of money encourages people to diversify and learn to do more things for themselves. B) The use of money encourages people who want to exchange to become more closely acquainted. C) The use of money lowers the cost of locating people with whom to exchange. D) The use of money reduces opportunities for fraud and theft. E) The use of money reduces selfishness because money in itself has no value.
Accountants do not calculate __________ differently than do economists. a. Total revenue
b. Total costs. c. Profits. d. Any of the above.
On the graph that depicts the theory of liquidity preference,
a. the demand-for-money curve is vertical. b. the supply-of-money curve is vertical. c. the interest rate is measured along the horizontal axis. d. the price level is measured along the vertical axis.
According to the textbook, NAFTA was expected to help which country exploit its comparative advantage in the production of goods made by unskilled labor?
A. The USA B. Cuba C. Canada D. Mexico