The use of a two-part price in a regulated natural monopoly
A) maximizes the deadweight loss.
B) allows the firm to maximize profits.
C) may make it possible for the firm to obey a marginal cost pricing rule and not go out of business.
D) All of the above answers are correct.
C
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As compared to the basic Nash-Cournot equilibrium for duopolists where the firms face the same market demand curve and have identical costs, in the situation where the firms produce products which are viewed by consumers as not being identical,
A) there will generally be different prices charged by the two firms. B) there will generally be different quantities produced by the two firms. C) one or both of the firms may practice spurious differentiation. D) All of the above.
The short-run Phillips curve is drawn for a given expected inflation rate and so it shifts as inflation expectations change
a. True b. False Indicate whether the statement is true or false