Watt Power and Light, an electric company, will suffer an economic loss
a. even at its profit-maximizing output because marginal cost is always less than average cost
b. even at its profit-maximizing output because average cost is always less than marginal cost
c. if regulators insist that it produce where price equals marginal cost because marginal cost is less than average cost
d. if regulators insist that it produce where price equals marginal cost because average cost is always less than marginal cost
e. if regulators insist that it produce where price equals average cost because average cost is always less than marginal cost
C
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Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of an increase in the U.S. money supply on the dollar/euro exchange rate
What will be an ideal response?
In Figure 3-7 above, the multiplier is
A) 2. B) 0.2. C) 5. D) 2.5.