If a regulator forced a natural monopolist to set P = MC
A) the monopolist would earn economic profits.
B) the monopolist would suffer economic losses.
C) the monopolist would break even.
D) the monopolist would earn monopolistic profits.
Answer: B
Economics
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Which economic concept is illustrated by the saying "You can't have your cake and eat it too"?
a. Private property rights b. Economic freedom c. Scarcity d. Opportunity cost e. Gains from trade
Economics
One could argue that price ceilings should not be placed on the goods sold at the high price "Quick Stop Shop" stores for all of the following reasons except:
a. cash price is not true price b. convenience has a value c. time has a value d. the price of gasoline sold at the store is already controlled e. check out is fast at the "Quick Stop Shop"
Economics