If a natural monopoly is told to set price equal to average cost, then the firm
A) is not able to set marginal revenue equal to marginal cost.
B) automatically also sets price equal to marginal cost.
C) will make a substantial economic profit.
D) will incur an economic loss.
E) sets a price that is lower than its marginal cost.
A
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During a particular year, nominal wages increased by 4 percent but real wages declined by 2 percent. This implies that the price level increased by 6 percent
a. True b. False Indicate whether the statement is true or false
If in late 2016 100 U.S. dollars exchanged for 118 euros and in mid-2017 100 U.S. dollars exchanged for 127 euros, then:
A. American goods became more expensive to Americans. B. European goods became more expensive to Americans. C. the dollar appreciated relative to the euro. D. the euro appreciated relative to the dollar.