A natural monopoly that is regulated to set its price equal to its marginal cost
A) incurs an economic loss.
B) makes zero economic profit.
C) makes an economic profit.
D) creates the maximum deadweight loss.
A
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If the Fed raises the federal funds rate, eventually the
A) AD curve shifts rightward and real GDP increases. B) AD curve shifts leftward and real GDP decreases. C) AS curve shifts rightward and real GDP increases. D) AS curve shifts leftward and real GDP decreases. E) AD curve shifts rightward and real GDP decreases.
All of the following are new rules affecting the shadow banking system as a result of the Dodd-Frank Act EXCEPT:
A) some trading of derivatives are required to take place on exchanges B) large hedge funds are required to register with the SEC C) firms selling mortgage-backed securities and similar assets are required to hold 5% of the credit risk D) securitized loans must now be insured