The regulatory lag:
A) always benefits the regulated firm.
B) is likely to occur with rate-of-return regulation.
C) promotes economic efficiency.
D) all of the above
B
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An increase in the inflation rate results in ________ in the quantity of real GDP demanded because a higher price level ________
A) an increase; increases consumption and investment B) a decrease; increases consumption and investment C) a decrease; reduces consumption and investment D) an increase; reduces consumption and investment
Policymakers who wish to discourage businesses that pollute by taxing them:
A. forget that businesses will pass the entire tax onto consumers of their products. B. should place a tax on consumers instead of the producers in order to increase the burden on sellers. C. should place a tax on producers instead of the consumers in order to increase the burden on sellers. D. forget that some of the tax burden will be shared by consumers.
Large firms that invest in specific assets which cannot easily be redeployed to other uses or locations, may be able to protect their profits for longer than if they do not make such investments
Indicate whether the statement is true or false
An agreement between two duopolists to function as a monopolist usually breaks down because
a. they cannot agree on the price that a monopolist would charge. b. they cannot agree on the output that a monopolist would produce. c. each duopolist wants a larger share of the market to capture more profit. d. each duopolist wants to charge a higher price than the monopoly price.