Regulators usually encourage natural monopolists to engage in
A) marginal cost pricing.
B) average cost pricing.
C) marginal cost pricing, with subsidies from the government offsetting the losses.
D) inefficient pricing.
Answer: B
Economics
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Menu costs are the:
a. cost of changing interest rates. b. cost of converting currencies. c. cost of changing prices. d. cost of changing exchange rates.
Economics
The overwhelming unpopularity of inflation among citizens is largely a result of the fact that
A) inflation raises the real cost of such basic necessities as food, housing, and clothing. B) inflation reduces the value of real wealth. C) no one knows what causes it. D) no one (or almost no one) gains from inflation. E) people who gain from inflation often erroneously conclude that they are losing as a result of it.
Economics