A local cable company has its rates set at P = $15 by a regulatory commission. Its current output is 10,000 households and its costs are as follows: ATC = $17; AVC = $14; and MC = $15 . From this, we can tell that this is
a. a fair price, and the firm earns a normal profit
b. a fair price, and the firm earns an economic loss
c. marginal cost pricing, and the firm earns a normal profit
d. marginal cost pricing, and the firm earns an economic loss
e. the same price that an unregulated monopolist would charge
D
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Holding all other influences constant, the quantity of labor supplied in a given time period depends
A) directly on the real wage rate so that a higher real wage increases the quantity of labor supplied. B) inversely on the real wage rate so that a higher real wage decreases the quantity of labor supplied. C) on the money wage rate not the real wage rate. D) directly on the quantity of labor demanded. E) inversely on the quantity of labor demanded.
What does the term "conditionality" mean in respect to the policies of the International Monetary Fund (IMF)?
A) The IMF will grant loans to any country that seeks them. B) The IMF will cut off loans to a country unless it meets certain specified policy goals regarding budget deficits, inflation, and other macroeconomic concerns. C) The IMF will work with a country only if country destroys its own fiat money and instead adopts the euro. D) The IMF will assist any foreign country that supports the military policies of the U.S. and Great Britain.