An economic problem with using subsidies or price ceilings to move a monopoly toward the competitive equilibrium is that
a. it may increase monopoly profits.
b. it may decrease monopoly profits.
c. policy makers may not be able to determine what the competitive equilibrium is.
d. policy makers always need to be lobbied before taking any actions.
c. policy makers may not be able to determine what the competitive equilibrium is.
You might also like to view...
If a consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S, we know that
A) the consumer's income is 250. B) the price of shelter is 5. C) the price of shelter is 5 times the price of food. D) All of the above.
With no price discrimination,
a. A firm sells every unit at different prices b. A firm sells every unit at same prices c. Low-value groups pay a lower price than the high-value groups d. Low-value groups pay a higher price than the high-value groups