Author Question: Which of the following is true? a. Average cost pricing reduces the incentives for a monopolist to ... (Read 38 times)

Shelles · **on:** Jun 30, 2018

Which of the following is true?
a. Average cost pricing reduces the incentives for a monopolist to find ways to reduce its costs.
b. With natural monopoly, if regulators allow the firm to earn profits, there will be a welfare cost from producing too little of the good.
c. Government regulation of monopolies aims to achieve the efficiency of large-scale production, without permitting the producers to charge monopoly prices.
d. All of the above are true.

Question 2

If 1 was equivalent to 120 Japanese yen in 2008 and 125 Japanese yen in 2010, it implies in 2010, there was:
a. a depreciation of the dollar against the yen.
b. a depreciation of the yen against the dollar.
c. an appreciation of the yen against the dollar.
d. no change in the value of yen, but the dollar had weakened.
e. no change in the value of dollar, but the yen had strengthened.