Author Question: There is no deadweight loss if the regulatory rule for a natural monopoly A) is an average cost ... (Read 127 times)

sdfghj

  • Hero Member
  • *****
  • Posts: 552
There is no deadweight loss if the regulatory rule for a natural monopoly
 
  A) is an average cost pricing rule.
  B) sets price at a level that enables the regulated firm to earn a specified rate of return on its capital.
  C) is a marginal cost pricing rule.
  D) prevents the firm from engaging in any form of price discrimination.

Question 2

With respect to redistribution, one reason The Big Tradeoff exists is because
 
  A) government programs employ resources that could have been productive elsewhere.
  B) government policymakers must choose between funding the various programs.
  C) government programs only employ resources that had no value to society otherwise.
  D) government programs only pay workers their opportunity cost.



Dinolord

  • Sr. Member
  • ****
  • Posts: 313
Answer to Question 1

C

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

For a complete list of videos, visit our video library