Suppose for a regulated monopoly that price equals minimum ATC but price exceeds MC. This means that:
A. both productive and allocative efficiency are being achieved.
B. productive efficiency is being achieved, but not allocative efficiency.
C. allocative efficiency is being achieved, but not productive efficiency.
D. neither productive nor allocative efficiency is being achieved.
Answer: B
You might also like to view...
Audit studies suggest that there may be stark differences in the opportunities available to minorities and women, yet regression analyses suggest that people of every color and gender earn what they can expect to earn, given their characteristics
Indicate whether the statement is true or false
In the above figure, the competitive unregulated equilibrium is producing and consuming ________ vaccinations per year at a price of ________
A) 30 thousand; $40 B) 30 thousand; $30 C) 30 thousand; $20 D) 50 thousand; $30