Author Question: When an average cost pricing rule is imposed on a natural monopoly, ________. A) total surplus is ... (Read 105 times)

Mimi

  • Hero Member
  • *****
  • Posts: 542
When an average cost pricing rule is imposed on a natural monopoly, ________.
 
  A) total surplus is maximized and the monopoly incurs an economic loss
  B) the monopoly makes zero economic profit
  C) the monopoly makes an economic profit
  D) total surplus is maximized and the monopoly makes an economic profit

Question 2

Organic food might be good for your health but in light of the 2008 downturn in the economy and falling incomes, consumers are buying less organic and more non-organic food. Based on these events, what is TRUE?
 
  A) Organic food is a normal good and non-organic food is an inferior good.
  B) Organic food is an inferior good and non-organic food is a normal good.
  C) Organic food is a normal good and non-organic food is a normal good.
  D) Organic food is an inferior good and non-organic food is an inferior good.



durant1234

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

B

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

For a complete list of videos, visit our video library