If a natural monopoly does not inflate its costs, the output it produces is the smallest when the monopoly is
A) left unregulated.
B) regulated according to an average cost pricing rule.
C) regulated according to a marginal cost pricing rule.
D) regulated to maximize total surplus.
A
Economics
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In the quantity equation framework for understanding the determinants of long-run inflation, a depreciation of the exchange rate ________ velocity, putting ________ pressure on inflation
A) raises, upward B) raises, downward C) lowers, upward D) lowers, downward
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If economic profits are zero
A) accounting profits is less than the cost of capital. B) accounting profit is just covering the cost of capital. C) the cost of capital is negative. D) the entrepreneur should go to his/her next best alternative.
Economics