At a level of output when regulators require a natural monopoly to set a price that is equal to marginal cost, the firm
A) makes zero economic profit.
B) makes an economic profit.
C) incurs an economic loss.
D) makes a normal-economic profit.
E) makes either zero economic profit or an economic profit, depending on whether the firm's average total cost equals or is less than its marginal cost.
C
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In the money market, if the nominal interest rate is below the equilibrium level,
A) the demand for money curve will shift leftward. B) the quantity of money demanded exceeds the quantity of money supplied. C) the quantity of money supplied exceeds the quantity of money demanded. D) the supply of money curve will shift leftward. E) asset prices will rise.
How can national security possibly be threatened when a nation engages in free trade and specializes on the basis of comparative advantage?
What will be an ideal response?