Author Question: If producing a good or a service creates pollution, then A) an unregulated competitive market ... (Read 75 times)

stevenposner · **on:** Jun 29, 2018

If producing a good or a service creates pollution, then

A) an unregulated competitive market produces an efficient output.
B) the industry's supply curve includes the extra cost of pollution.
C) at the unregulated, competitive market equilibrium quantity, marginal social cost is greater than the equilibrium price.
D) at the unregulated, competitive market equilibrium quantity, marginal social benefit and marginal social cost are equal.
E) at the unregulated, competitive market equilibrium quantity, marginal social benefit is less than the equilibrium price.

Question 2

Managers of a natural monopoly regulated using rate of return regulation have an incentive to

A) exaggerate the firm's costs.
B) underestimate the firm's costs.
C) minimize the monopoly's deadweight loss.
D) make zero economic profit.
E) exaggerate the firm's profit.

Mholman93 · **Reply #1 on:** Jun 29, 2018

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 56% of students answer this correctly