Which of the following statements regarding a marginal-cost pricing rule for a natural monopoly is WRONG?
A) It maximizes total surplus in a regulated industry.
B) The firm produces the efficient quantity.
C) The firm's price equals its marginal cost.
D) The firm makes an economic profit.
D
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If the marginal propensity to consume is unchanged and autonomous consumption expenditures increase, then
A) saving at every level of disposable income increases. B) the break-even disposable income decreases. C) the break-even disposable income increases. D) saving is unaffected.
According to the law of demand, if the price of movie rentals decreases, ceteris paribus,:
a. the demand for movie rentals would increase. b. the quantity demanded of movie rentals would decrease. c. the quantity demanded of movie rentals would increase. d. the demand for movie rentals would decrease. e. the quantity demanded of movie rentals would not change.