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.
c
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Refer to Figure 11-5. Identify the curves in the diagram
A) E = average fixed cost curve; F = average total cost curve; G = average variable cost curve, H = marginal cost curve B) E = marginal cost curve; F = total cost curve; G = variable cost curve, H = average fixed cost curve C) E = average fixed cost curve; F = variable cost curve; G = total cost curve, H = marginal cost curve D) E = marginal cost curve; F = average total cost curve; G = average variable cost curve; H = average fixed cost curve.
If wages and prices are flexible, then an anticipated change in the money supply will cause wages and prices to __________ the actual inflation rate
A) increase at the same rate as B) increase at a higher rate than C) increase at a slower rate than D) cannot be exactly predicted