Regulating an industry to remove all economic profit
a. removes all incentive for efficiency and responsiveness to consumer demand.
b. removes distortions caused by cross subsidies.
c. removes allocative inefficiency.
d. increases incentives to be productively efficient.
a
Economics
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The above figure shows the apartment market in Big City. What is the equilibrium rent in Big City?
A) $1500 B) $1350 C) $1250 D) $1125
Economics
In practice, oligopolistic markets are:
A. usually protected by the government. B. fairly common. C. forbidden by the government. D. very rare.
Economics