If government regulators make the natural monopolist set price equal to marginal cost
A) the natural monopolist will make zero economic profits.
B) the natural monopolist will make normal profits.
C) the natural monopolist will make losses and go out of business.
D) the natural monopolist will make positive economic profits larger than if it wasn't regulated at all.
C
You might also like to view...
When the price of a product increases, consumers shift their purchases to other products whose prices are now relatively lower. This statement describes
A. an inferior good. B. the substitution effect. C. the income effect. D. the rationing function of prices.
Which of the following will not cause a demand curve to shift position?
a. A doubling of the good's price b. A doubling of the price of a closely substitutable good c. A doubling of income d. A shift in preferences
Capital refers to an inventory or a stock of productive equipment and machines
a. True b. False Indicate whether the statement is true or false
The entry of firms into a market
A. Reduces the profits of existing firms in the market. B. Shifts the market supply curve to the left. C. Shifts the market demand curve to the left. D. Increases the equilibrium price.