Jay set up his hot dog stand near the business district. His total variable cost includes the
A) annual insurance for the hot dog stand.
B) cost of buying the hot dog stand.
C) cost of the hot dogs and condiments.
D) interest he pays on the funds he borrowed to pay for advertising.
E) revenue he gets when he sells his first hot dog each day.
C
Economics
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The outcome of regulating a natural monopoly using the marginal cost pricing rule is
A) that the firm makes a normal profit. B) that the firm maximizes its profit. C) that consumer surplus is less than what it would be if the firm maximized its profit. D) an efficient level of production. E) that the firm makes an economic profit.
Economics
Explain the concept of moral hazard. Give an example
What will be an ideal response?
Economics