Author Question: At a level of output when regulators require a natural monopoly to set a price that is equal to ... (Read 79 times)

burchfield96 · **on:** Jun 29, 2018

At a level of output when regulators require a natural monopoly to set a price that is equal to marginal cost, the firm

A) makes zero economic profit.
B) makes an economic profit.
C) incurs an economic loss.
D) makes a normal-economic profit.
E) makes either zero economic profit or an economic profit, depending on whether the firm's average total cost equals or is less than its marginal cost.

Question 2

Which of the following is TRUE?

A) For an inferior good, when income increases, the demand curve shifts leftward.
B) The demand curve for a good shifts leftward when the price of a substitute rises.
C) If consumers expect the price of a good will rise in the future, the demand curve shifts leftward.
D) An increase in population shifts the demand curve for most goods leftward.