Average cost pricing for a natural monopoly will results in ______.
a. the socially efficient level of output
b. a less than socially efficient level of output
c. a greater than socially efficient level of output
d. the firm suffering economic losses
e. the firm earning economic profit
Ans: b. a less than socially efficient level of output
Economics
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Refer to Figure 9-3. If there was no quota, how many pounds of peanuts would domestic producers supply?
A) 10 million B) 28 million C) 30 million D) 40 million
Economics
Market failure occurs when
A. resources are misallocated, or allocated inefficiently. B. perfectly competitive firms produce where MR = MC. C. firms are only able to earn a normal profit. D. firms that are incurring losses leave a market.
Economics