Economic regulation aims to control the price, output, the entry of new firms, and the quality of service in industries in which monopoly appears inevitable or even desirable.
a. True
b. False
Question 2
Peg's Kegs sells kegs in a perfectly competitive market. Because low demand forced price below average variable cost, Peg has made the short-run decision to shut down. Her current loss is
a. zero
b. greater than if she had kept operating
c. the same as the losses she was incurring while operating
d. equal to fixed cost
e. less than her total revenue
