If the government wants a natural monopoly to earn a "fair return" or zero economic profit, it will set
a. price equal to marginal cost.
b. price equal to average total cost.
c. price equal to average revenue.
d. marginal cost equal to marginal revenue.
e. marginal cost equal to average total cost.
B
Economics
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The opportunity cost of holding money is measured by
A) the interest yield that could have been earned by holding some other asset. B) the liquidity of interest-bearing assets. C) the price of government bonds. D) a dollar.
Economics
Due to a recession in the US, the average rate of return on investments is likely to fall causing the US dollar to
a. Appreciate b. Depreciate c. Not change in value d. None of the above
Economics