Average cost regulation of a natural monopoly does not involve:
a. production at a socially inefficient level of output
b. a tendency for average total cost curves to shift upward over time.
c. a subsidy.
d. production at the output level at which demand intersects the average total cost curve.
c
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A decrease in the real interest rate in the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
An increase in the income of bus riders, accompanied by a simultaneous increase in the wages of the bus drivers causes, the price for bus rides(an inferior good) _____________ and the quantity demanded for bus rides ____________
a. Decreases; decreases b. Increase; increases c. Uncertain, Decreases d. Uncertain, Increases