When a regulatory agency uses marginal cost pricing to regulate a monopolist,
a. price will exceed marginal cost.
b. production costs will probably exceed the total revenues of the monopolist.
c. marginal cost will equal average total cost.
d. social welfare could be improved if average cost pricing was used instead
B
Economics
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What is meant by the term "incentives," and why are they important?
What will be an ideal response?
Economics
Which of the following statements about gold jewelry and round-trip bus tickets to Bismarck, North Dakota, is most likely to be correct?
a. They are both inferior goods. b. Their demand curves probably are quite similar. c. They are complements. d. They are substitutes. e. They are unrelated.
Economics