The prices that are in the public’s best interest will
A. always allow the regulated firm to break even.
B. always allow the regulated firm to make positive economic profits.
C. sometimes leave the regulated firm with economic losses.
D. leave the regulated firm with profits that are about 10 percent higher than those of other firms.
Answer: C
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Required reserves:
A. Are equal to the required reserve ratio times total reserves. B. Are the minimum amount of reserves a bank is required to hold. C. Represent the dollars a bank can lend. D. Must be held in a bank's vault.
Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the
A) demand for hot dogs increases. B) demand for hot dogs decreases. C) quantity of hot dogs demanded increases. D) quantity of hot dogs demanded decreases. E) More information is needed to determine if the demand increases or decreases.