Regulators usually encourage natural monopolists to engage in
A. marginal cost pricing.
B. marginal cost pricing, with subsidies from the government offsetting the losses.
C. average cost pricing.
D. inefficient pricing.
Answer: C
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Refer to the figure below. If the price is $4 today and there is no change in either supply or demand, one would expect the price in the future to be:
A. greater than $6. B. $4. C. less than $4. D. greater than $4.
Fred receives a $14,000.00 per year grant by the federal government because he is disabled. This is a
A) demerit good. B) transfer payment. C) non-rival good. D) free rider problem.
A rational individual would rather receive $5,000 today than receive $6,000 in one year if the applicable nominal interest rate was 10%
a. True b. False Indicate whether the statement is true or false
In 2017, about what percentage of total income was earned by the poorest fifth of all U.S. households?
A. 12 percent B. 6 percent C. 3 percent D. 1 percent