When the monetary base increases by $4 billion, the quantity of money increases by $10 billion. Thus, the money multiplier equals

A natural monopoly that is regulated to set its price according to the marginal cost pricing rule will

A) incur an economic loss. B) maximize its profit. C) produce a quantity of output such that price is above average total cost. D) produce a quantity of output such that marginal cost is above average total cost.

Long-run producer surplus in a perfectly competitive industry accrues mainly to:

a. suppliers of inputs with inelastic supply curves. b. suppliers of inputs with elastic supply curves. c. firms' owners. d. marginal consumers.