When regulating a firm, setting price equal to marginal cost does not necessarily require providing a subsidy if
a. it always requires providing a subsidy
b. ATC is always falling
c. MC is always falling
d. variable costs are covered
e. ATC is U-shaped
E
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Which of the following illustrates a burden of the national debt?
A) Future generations will have to pay lower taxes to finance the national debt. B) A large debt decreases the amount of capital, thereby decreasing future incomes. C) The current generation receives a higher level of government services. D) The current generation pays a higher level of taxes.
A monopolistic competitor can expect to earn an economic profit in the long run.
Answer the following statement true (T) or false (F)
The U.S. income tax is currently a __________ tax
A) progressive B) proportional C) regressive D) proactive
If people are risk averse regarding environmental damages.
a. Low discount rates should be used b. High discount rates should be used c. Expected values will overstate ecological damages d. Irreversible actions should be taken e. They will generally approve of irreversible projects f. All of the above. g. None of the above.