Author Question: What is meant by the phrase, There is no such thing as a free lunch? What will be an ideal ... (Read 47 times)

mcmcdaniel · **on:** Jun 29, 2018

What is meant by the phrase, There is no such thing as a free lunch?

What will be an ideal response?

Question 2

The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. If Light-U-Up is unregulated, it will produce ________ and sell at a price of ________.

A) 200 kwh; 10 per kwh
B) 200 kwh; 30 per kwh
C) 300 kwh; 20 per kwh
D) 400 kwh; 10 per kwh

Christopher · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Markets are generally efficient, which implies that profit opportunities are eliminated quickly.

Answer to Question 2

B