Why do government regulators not enforce marginal cost pricing for natural monopolies? What are the common regulatory solutions?
What will be an ideal response?
If government regulators enforce marginal cost pricing for natural monopolies, then the firms will face losses and eventually go out of business. Instead, the common regulatory solutions include allowing firms to charge a price that covers the average cost of production or to set a price that ensure a normal return on investment.
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What happened during the Great Depression?
What will be an ideal response?
The rate of inflation in the United States since 1960 has:
A. declined steadily and predictably from 14% to 1.3%. B. remained below 1.3% as a result of effective Federal Reserve monetary policy. C. increased steadily from 1.3% to 14% and then decreased steadily back to 1.3%. D. fluctuated between 1.3 and 14%, often catching many people by surprise.