When a business firm makes an investment in physical capital, that investment is subject to _____.
a. state and local government incentives
b. economic output and productivity
c. political orientated incentives
d. the discipline of the market
d. the discipline of the market
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If the natural monopoly shown in the figure above is unregulated, then the deadweight loss will be
A) $0. B) $2 million. C) $4 million. D) $8 million.
If the price elasticity of demand for aluminum foil is 1.45, then a 2.4% decrease in the price of aluminum foil will increase the quantity demanded of aluminum foil by
a. 1.66%, and aluminum foil sellers' total revenue will increase as a result. b. 1.66%, and aluminum foil sellers' total revenue will decrease as a result. c. 3.48%, and aluminum foil sellers' total revenue will increase as a result. d. 3.48%, and aluminum foil sellers' total revenue will decrease as a result.