A bureaucrat at a public utility commission hearing testifies that the local area telephone monopoly is able to maximize its revenue. For that reason the rate-hike request should be denied
What will be an ideal response?
The goal of any firm is to maximize profits, not to maximize revenue. Even if the monopoly were maximizing its revenue this would be no guarantee that it is maximizing its profits.
Economics
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One of the significant criticisms of MNCs is
(a) the relatively low wages they pay. (b) on balance they bring in more capital than officially registered. (c) increased monetary policy effectiveness. (d) all of the above. (e) none of the above.
Economics
Draw a saving—investment diagram to show how each of the following changes shifts the IS curve
(a) Future income rises. (b) The future marginal productivity of capital increases. (c) Government purchases decrease temporarily. (d) The effective corporate tax rate increases.
Economics