This topic contains a solution. Click here to go to the answer

Author Question: The reason an unregulated natural monopolist will produce at an economically inefficient quantity is ... (Read 124 times)

future617RT

  • Hero Member
  • *****
  • Posts: 543
The reason an unregulated natural monopolist will produce at an economically inefficient quantity is
 
  A) due to the fact that the monopolist will equate marginal cost with price to determine the output level.
  B) due to the fact that the monopolist will equate average total cost with price to determine the output level.
  C) that the price does not equal the true marginal cost of producing the good.
  D) that the monopolist will produce a quantity greater than the minimum of the average total cost curve.

Question 2

What are the key characteristics of a public good?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

zenzy

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

C

Answer to Question 2

A public good is not subject to the principle of rival consumption in the sense that it can be provided to different individuals without additional costs. A public good is also subject to the free-rider problem in the sense that persons can benefit from the good without paying for it.




future617RT

  • Member
  • Posts: 543
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Gracias!

 

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

For a complete list of videos, visit our video library