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If natural monopolies are regulated to produce where there is resource-allocative efficien

If natural monopolies are regulated to produce where there is resource-allocative efficiency, they produce where

a.price equals average total cost.

b.marginal revenue equals marginal cost.

c.price equals marginal cost.

d.marginal revenue equals average total cost.

 

 

 

69.If natural monopolies are regulated to produce where there is a normal profit, they produce where

a.price equals average total cost.

b.marginal revenue equals marginal cost.

c.price equals marginal cost.

d.marginal revenue equals average total cost.

 

 

 

70.The natural monopolist might have an incentive to decrease cost under

a.price regulation.

b.profit regulation.

c.output regulation.

d.a and b

 

 

 

71.The natural monopolist might have an incentive to let costs increase under

a.price regulation.

b.profit regulation.

c.output regulation.

d.a and b

 

 

 

72.The natural monopolist might have an incentive to go out of business under

a.price regulation.

b.profit regulation.

c.output regulation.

d.average-cost pricing.

e.b and d

 

 

 

73.The capture theory of regulation holds that

a.regardless of the motive for the initial regulation and the establishment of the regulatory agency, eventually the special interests of the industry that is being regulated will be "captured" (controlled) by the regulatory agency.

b.regardless of the motive for the initial regulation and the establishment of the regulatory agency, eventually the regulatory agency will be "captured" (controlled) by the special interests of the industry that is being regulated.

c.whether or not the special interests of the industry that is being regulated will be "captured" (controlled) by the regulatory agency depends on the motive for the initial regulation and the establishment of the regulatory agency.

d.whether or not the regulatory agency will be "captured" (controlled) by the special interests of the industry depends on the motive for the initial regulation and the establishment of the regulatory agency.

 

 

 

74.The public interest theory of regulation holds that

a.regulators are seeking to do and will do through regulation what is in the best interest of the public or society at large.

b.even though regulators seek to do what is in the best interest of the public at large, through regulation they end up doing what is in the best interest of the special interests of the industry that is being regulated.

c.even though regulators seek to do what is in the best interest of special interests of the industry that is being regulated, through regulation they end up doing what is in the best interest of the public at large.

d.regulators are seeking to do and will do through regulation what is in the best interest of the special interests of the industry that is being regulated.

 

 

 

75.Which of the following was declared illegal by the Sherman Act of 1890?

a.a conspiracy in restraint of trade

b.price discrimination

c.tying contracts

d.interlocking directorates

 

 

 

76.If the four-firm concentration ratio is 100 percent, this means that the

a.top four firms each hold 5 percent of the market share.

b.industry consists of no more than four firms.

c.top four firms necessarily each hold a 25 percent market share.

d.none of the above

 

 

 

77.What is the Herfindahl index of an industry made up of ten equal-sized firms?

a.1,800

b.10,000

c.100

d.1,000

 

 

 

78.What is the Herfindahl index of an industry made up of four equal-sized firms?

a.1,667

b.2,500

c.2,250

d.125

e.This cannot be determined without further information.

 

 

 

79.If an industry consists of 20 firms holding equal market shares, the Herfindahl index is

a.500.

b.400.

c.1,800.

d.2,500.

e.This cannot be determined without further information.

Dec 09 2019 Read more Less More

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