The primary purpose of economic regulation of an industry is to
A) control the prices charged by the regulated industry.
B) increase taxes across the board.
C) reduce output.
D) control hiring and firing within the industry.
A
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To the economist, total cost includes:
A. explicit and implicit costs. B. neither implicit nor explicit costs. C. implicit, but not explicit, costs. D. explicit, but not implicit, costs.
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Mega Corp: TC = 5,000 + 100QBig Inc: TC = 4,000 + 200QFor both firms, average total cost:
A. increases as quantity increases. B. declines as quantity increases for Mega Corp and increases as quantity increases for Big Inc. C. declines as quantity increases. D. is constant for all quantities.