To allow a public utility (which is a natural monopoly) to earn only a normal profit, the government should
a. do all of the following
b. set price equal to average cost
c. equate marginal cost and average cost
d. set marginal cost equal to marginal revenue
e. set price equal to marginal cost
B
Economics
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An electronic payments system has not completely replaced the paper payments system because of all of the following reasons EXCEPT
A) expensive equipment is necessary to set up the system. B) security concerns. C) privacy concerns. D) transportation costs.
Economics
Countries that engage in trade will tend to specialize in the production of goods and services in which they have ________ and will ________ these goods and services
A) a comparative advantage; import B) an absolute advantage; export C) a comparative advantage; export D) an absolute advantage; import
Economics