Forcing a natural monopoly to charge P = MC will not work
Indicate whether the statement is true or false
True . Since marginal cost is below average cost for a natural monopoly, this would be equal to forcing the firm to incur a loss. This is not possible.
Economics
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When there are credit-market imperfections, an increase in government debt may be advantageous because it
A) discourages credit-constrained consumers from borrowing too much. B) allows credit-constrained consumers to consume more. C) eliminates the problems that cause credit-market imperfections. D) encourages more private saving.
Economics
The money ____ equals 1 divided by the reserve requirement. The larger the reserve requirement, the ____ the money multiplier
a. supply; larger b. multiplier; larger c. supply; smaller d. multiplier; smaller
Economics