If the government wants a natural monopoly to earn a "fair return" or zero economic profit, it will set
a. price equal to marginal cost
b. price equal to average total cost
c. price equal to average revenue
d. marginal cost equal to marginal revenue
e. marginal cost equal to average total cost
B
Economics
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Which of the following is NOT a cause for real wage rigidity?
A. minimum-wage laws B. unemployment insurance C. union power D. efficiency wages
Economics
In 1990-1991, the government budget deficit ________ mainly due to the ________
A) rose, recession's effect on tax collection B) rose, expenditures of the Persian Gulf War C) fell, recession's effect on government expenditures D) fell, economic stimulus provided by the Persian Gulf War
Economics