Most macroeconomists believe that both fiscal and monetary policy can shift aggregate demand and that such interventions can be counterproductive

If an average cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be

A) zero. B) $150. C) $50. D) $250.

When a firm is regulated so that its price enables it to earn a specified target percent return on its capital, the regulation is called

A) rate of return regulation. B) price cap regulation. C) earnings limited regulation. D) target pricing regulation.