Market power guarantees profit
A) True, which is why firm's locate as far away from each other as possible.
B) False, market power guarantees price greater than marginal cost.
C) True, market power guarantees price greater than average cost.
D) False, market power guarantees price equal to average cost.
B
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To decide whether the slope coefficient indicates a "large" effect of X on Y, you look at the
A) size of the slope coefficient B) regression R2 C) economic importance implied by the slope coefficient D) value of the intercept
One way that natural monopolies are typically regulated is
a. by setting a price that makes economic profit zero. b. by forcing the firm to set price equal to marginal cost c. by setting a price that gives owners a "fair rate of return" d. by forcing the firm to set price equal to minimum average total cost e. by setting a price that maximizes the firm's economic profit