Government regulators can achieve efficiency for a natural monopoly by setting a price ceiling equal to the intersection of the demand curve and the:
a. marginal revenue curve.
b. average cost curve.
c. marginal cost curve.
d. average fixed cost curve.
c
Economics
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Suppose a farmer is a price taker for soybean sales with cost functions given by TC = .1q2 + 2q + 30 MC = .2q + 2 The profit maximizing level of output is
a. 0 b. 30 c. 40 d. 50
Economics
When the price of a key input to production increases, the supply curve decreases, or shifts to the left
a. True b. False Indicate whether the statement is true or false
Economics