If a natural monopoly regulatory commission sets a price where marginal cost is equal to demand
A) the firm would earn monopoly profits. B) the firm would incur a loss.
C) economic efficiency would not be achieved. D) the firm would break even.
B
Economics
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For the purposes of GDP accounting, government purchases include
A) the purchases of new military equipment. B) direct transfer payments by the government to other individuals. C) Social Security payments. D) welfare payments.
Economics
A firm lowers the price it charges. The firm's total revenue decreases. What can we conclude about the price elasticity of demand?
A) Demand is elastic. B) Demand is unit elastic. C) Demand is inelastic. D) Demand is perfectly elastic. E) Not enough information is given to conclude anything about price elasticity of demand.
Economics