« previous next »

Author Question: Price cap regulation involves A) setting the monopoly's price equal to its average total cost. ... (Read 88 times)

dmcintosh

  • Hero Member
  • *****
  • Posts: 517
on: Jun 29, 2018
Price cap regulation involves
 
  A) setting the monopoly's price equal to its average total cost.
  B) setting the monopoly's price equal to its profit-maximizing price.
  C) setting a maximum price the monopoly may charge.
  D) assuming a natural monopoly will not charge a higher than profit-maximizing price.
  E) setting the monopoly's price equal to its marginal cost.

Question 2

Refer to the scenario above. Suppose you decide to buy a Toyota Corolla. You value the car for 10,000. You don't know it, but the car dealer values it for 8,500. What is the minimum price that the seller would accept for the car?
 
  A) 8,500
  B) 7,000
  C) 10,000
  D) 5,000


Anonymous

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Role of cooperativity of binding in regulation Role of cooperativity of binding in regulation
Average Pulse Rates by Age Average Pulse Rates by Age
Refraction and the Setting or Rising Sun Refraction and the Setting or Rising Sun
Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ... Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ...
Average Annual Growth Rates of Population by Country Group Average Annual Growth Rates of Population by Country Group
The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ... The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ...
Video: Types of Shock (Part 2 of 2)

For a complete list of videos, visit our video library