In many rural areas, electric generation and distribution utilities were initially set up as cooperatives in which the electricity customers were member-owners. Like most cooperatives, the objective of these firms was to:
A) maximize profits for the member-owners.
B) maximize total revenue that could be redistributed to the member-owners.
C) operate at zero profit in order to provide low electricity prices for the member-owners.
D) minimize the costs of production.
C
You might also like to view...
Without productivity growth, what is the long run the effect of labor migration?
a. There will be an increase in production in the sector using labor (or capital) intensively. b. There will be clear gains to owners of capital versus labor. c. There will be clear gains to labor versus owners of capital. d. There will be a shift of world resources toward the highincome nations.
If the price of Pepsi-Cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the Pepsi-Cola Company could increase its total revenue by
a. lowering price b. decreasing quantity supplied c. leaving price the same d. raising price e. decreasing supply