A natural monopoly regulated with an average cost pricing rule is ________

A) efficient and incurs an economic loss
B) inefficient and makes zero economic profit
C) inefficient and makes an economic profit
D) efficient and makes zero economic profit

B

Economics

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Refer to the scenario above. In the dominant strategy equilibrium, the payoff to Firm A is ________

A) $1.2 million B) $3.0 million C) $3.5 million D) $2.5 million

Economics

How can a proprietorship or partnership raise funds for expansion?

A) borrow from someone or an institution willing to lend the funds B) reinvest profit back into the business C) take on a partner or more partners D) Any of these would generate funds for expansion.

Economics