Jones can brew 10 gallons of lager or 5 gallons of stout every three months, or any linear combination in between. Which statement below is true?
A) It costs Jones 5 gallons of stout for every 10 gallons of lager brewed.
B) It costs Jones 1 gallon of stout for every 2 gallons of lager brewed.
C) It costs Jones 1/2 gallon of stout for every 1 gallon of lager brewed.
D) All of the above are true.
D
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Because trucking as an industry involves the generation of pollutants in engine exhaust,
A) the supply curve of trucking services overstates the true cost of providing those services. B) the supply curve of trucking services understates the true cost of providing those services. C) the demand curve for trucking services overstates the true benefit of providing those services. D) the demand curve for trucking services understates the true benefit of providing those services. E) the market for trucking services will always be away from equilibrium by an amount equal to the value of the externality.
Which of the following is a major shortcoming of government regulation of business monopoly?
a. The regulators often estimate production costs incorrectly and thus force firms into loss positions. b. The regulators often come to represent the interests of the established firms and use their power to limit competition. c. The regulators usually permit firms to make unusually high accounting profits. d. The regulators, acting in consumers' interests, often force prices so low that even with efficient production techniques the regulated firms lose money.