Regulation is guaranteed to be more efficient than a monopoly
A) True, the government is able to internalize the dead weight loss of the monopoly.
B) True, the consumers are better off if government provides the product rather than a private firm.
C) False, the government does not always have sufficient information to provide a more efficient market outcome.
D) False, the consumers are worse off under government regulation.
C
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In the short run, average fixed cost is constant as output increases
Indicate whether the statement is true or false
Labor-saving technology causes which of the following? (i) The marginal productivity of labor increases. (ii) The marginal productivity of labor decreases. (iii) Labor demand shifts to the right. (iv) Labor demand shifts to the left
a. (i) only b. (ii) only c. (i) and (iii) only d. (ii) and (iv) only