"Today the U.S. telecommunications industry remains heavily regulated by the government as it was some 30 years ago." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. The telecommunications industry today is far from a natural monopoly as it was some 30 years ago, because consumers have increasingly substituted cellular and Web-based phone services for the traditional wired phone services. In addition, multiple wired-service operators compete today in many locales. All these factors make the U.S. telecommunications industry more competitive today.
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Which of the following is an asset of a bank and a liability for its customers?
a. deposits of its customers and loans to its customers b. deposits of its customers but not loans to its customers c. loans to its customers but not the deposits of its customers d. neither the deposits of its customers nor the loans to its customers
Regulators usually encourage natural monopolists to engage in
A) marginal cost pricing. B) average cost pricing. C) marginal cost pricing, with subsidies from the government offsetting the losses. D) inefficient pricing.