The loss of the profit motive by a publicly owned natural monopoly could:
A. increase the incentive to lower costs.
B. increase the motivation to improve efficiency.
C. increase the incentive to provide better service.
D. reduce the motivation to improve efficiency.
Answer: D
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Assume the market was in equilibrium in the graph shown. If the market price were set to $12, which of the following is true?
A. For those still interacting in the market, some surplus is transferred from buyer to seller.
B. For those still interacting in the market, some surplus is transferred from seller to buyer.
C. Producers gain the surplus of those buyers who dropped out of the market.
D. Consumers gain the surplus of those sellers who dropped out of the market.
Which of the following is an example of a transfer payment?
a. wages and salaries paid to the employees of the Internal Revenue Service b. purchase of automobiles by a local police department c. agriculture subsidies paid to farmers d. salaries paid to the college professors of state-operated universities
Answer the next question on the basis of the following data.OutputTotal Cost0$24133241348454561669The marginal cost associated with the production of the third unit of output is
A. $7. B. $12. C. $8. D. $6.
If Howard takes out a $400 loan for one year at 5 percent interest annually, he will pay back a total of:
A. $420. B. $400. C. $440. D. $20.