"If Michigan's electric utilities were allowed to use marginal cost pricing, it would lead to economic profits for these utilities." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
The statement is incorrect. Imposing marginal cost pricing on natural monopolies results in the firms incurring economic losses not economic profits.
Economics
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Most international investment finance today comes from
A) portfolio and foreign direct investment. B) tax collections. C) government financing. D) the sale of antiques.
Economics
Corporate profits are taxed by state and local governments, but not by the federal government
Indicate whether the statement is true or false
Economics