Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. According to the share-the-gains, share-the-pain theory, we would expect
A) prices to increase by a little immediately and profits to decrease by a lot.
B) there will be some increase in price but not immediately.
C) no increase in price.
D) a quick increase in price maintains profits in the industry.
B
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A defendant forced to pay punitive damages must pay the plaintiff
a. the exact amount of actual damage. b. more than the amount of actual damage. c. less than the amount of actual damage. d. nothing.
The expected real cost to a firm of using an additional unit of capital during a period of time is the
A) user cost of capital. B) marginal product of capital. C) marginal cost of capital. D) opportunity cost of capital.
Which of the following would make both the equilibrium real interest rate and the equilibrium quantity of loanable funds increase?
a. The demand for loanable funds shifts right. b. The demand for loanable funds shifts left. c. The supply of loanable funds shifts right. d. The supply of loanable funds shifts left.
For a natural monopoly to cover its total cost, its price must equal its
A) average total cost. B) marginal cost. C) demand. D) total fixed cost. E) marginal revenue.