Refer to Figure 15-16. Which of the following would be true if government regulators require the natural monopoly to produce at the economically efficient output level?
A) This results in a misallocation of resources.
B) The firm will sustain persistent losses and will not continue in business in the long run.
C) The marginal cost of producing the last unit sold exceeds the marginal benefit.
D) The firm will break even.
B
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Refer to the above figure. Excess quantity supplied will exist when
A) the price is between $0 and $6. B) the price equals $6. C) the price equals $10. D) quantity demanded equals 15.
A leftward shift of the Japanese demand curve for foreign exchange will
a. increase the price of foreign exchange in Japan b. decrease the value of the yen c. make foreign goods more expensive in terms of yen d. make foreign goods less expensive in terms of yen e. make Japanese goods less expensive in terms of foreign exchange