"If a natural monopoly is regulated using a marginal cost pricing rule, the firm makes zero economic profit." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
The statement is incorrect. If a firm is regulated using a marginal cost pricing rule, the firm incurs an economic loss.
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The labor force is the
A) total population divided by the number of employed people. B) number of employed people plus the number of unemployed people. C) working-age population minus the number of unemployed people. D) number of employed people minus the number of unemployed people. E) number of employed people in the working-age population.
The graph illustrates the supply of sweaters. Which of the following events will increase the quantity supplied of sweaters?
A) a rise in the price of a sweater B) a rise in the wage rate paid to the workers who make sweaters C) a rise in the expected future price of a sweater D) an increase in the number of sellers of sweaters E) a decrease in the number of sweater buyers