Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, deadweight loss is equal to
A) $5 million.
B) $0 million.
C) more than $10 million and less than $20 million..
D) $20 million or more.
A
Economics
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Jake plans to spend $100 on fried chicken and Pepsi. The price of a fried chicken is $5 and Pepsi is $2 per bottle. If Jake buys 10 fried chickens how many bottles of Pepsi can he buy?
A) 50 B) 10 C) 25 D) 75
Economics
When a firm is regulated so that its price enables it to earn a specified target percent return on its capital, the regulation is called
A) rate of return regulation. B) price cap regulation. C) earnings limited regulation. D) target pricing regulation.
Economics