Regulating natural monopolies according to the "rate of return" criterion is likely to
a. reduce the incentive of firms to minimize cost.
b. result in a smaller quantity of output than when the natural monopolist is unregulated.
c. discourage the firms from investing resources in an effort to influence the decisions of the regulatory agency.
d. increase the number of firms in the industry.
A
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If full-employment GDP is equal to $4.2 trillion, what does the long-run aggregate supply curve look like?
A) It is a vertical line at a level of GDP above $4.2 trillion. B) It is a vertical line at $4.2 trillion of GDP. C) It is a horizontal line at $4.2 trillion of GDP. D) It is a vertical line at a level of GDP below $4.2 trillion.
All but which of the following people supplied labor in colonial America?
(a) Members of the free population in England and other parts of Northern Europe. (b) Native Americans (c) Slaves (d) Indentured servants