Quiz_157 - 39 ,its A

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130) If a natural monopoly regulatory commission sets a price where marginal cost is equal to demand A) the firm would incur a loss.B) the firm would earn monopoly profits.C) economic efficiency would not be achieved.D) the firm would break even.Answer: A130)Diff: 2Page Ref: 508/508Topic: Natural MonopolyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective ThinkingFigure 15-9Figure 15-9 shows the cost and demand curves for the Erickson Power Company. 131)Refer to Figure 15-9.Erickson Power is a natural monopoly because 131)Diff: 1Page Ref: 508/508Topic: Natural MonopolyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills 39
132)Refer to Figure 15-9.The firm would maximize profit by producing 132)Diff: 1Page Ref: 508/508Topic: Profit MaximizationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills

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