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 force the firm to incur a loss. This is not possible.
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Describe the conditions under which a common resource is used efficiently
What will be an ideal response?
Ross is looking at a graph that shows the relation between inflation and unemployment. The graph measures the rate of inflation along the y-axis and the rate of unemployment along the x-axis. Among the points he observes on the graph (with y as the first value and x as the second) are (5, 4), (4, 4), (2, 4), and (1, 4). Ross is looking at a graph that shows a _____
a. short-run Phillips curve b. long-run Phillips curve c. short-run aggregate supply curve d. long-run aggregate supply curve