Under a price cap regulation, the regulated industry has an incentive to
A) operate efficiently and not inflate its costs.
B) inflate costs.
C) decrease its output.
D) None of the above answers is correct.
A
Economics
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Refer to Figure 12-11. If this is a constant-cost industry, what is the market price in the long-run equilibrium?
A) $5 B) $14 C) $15 D) $20
Economics
A tax in an industry would result in: a. a decrease in consumer surplus
b. a decrease in producer surplus c. a decrease in the gains from trade. d. all of the above.
Economics