If a natural monopoly has an average cost pricing rule imposed, the rule will
A) maximize total surplus in the regulated industry.
B) generate an economic loss for the regulated firm.
C) reduce the consumer surplus and generate a deadweight loss when compared to a marginal cost pricing rule.
D) set price below marginal cost.
C
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Assuming that the demand and supply of a good both increased by the same amount, the new equilibrium would represent: a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged. c. a decrease in price and a decrease in quantity exchanged. d. no change in price, and an indeterminate change in quantity exchanged.
Which of the following statements is correct, when the exchange rate changes from €2/$ to €1.5/$?
a. Both the euro and the dollar depreciate. b. The euro (€) depreciates. c. The euro depreciates and the dollar appreciates. d. The euro appreciates and the dollar depreciates. e. None of the above.