If the allowed rate of return falls short of the cost of capital:
A) industry will not grow rapidly enough.
B) the combinations of inputs employed by the industry will be optimal.
C) the cost of capital will fall.
D) industry will shift to capital intensive methods of production.
Correct Answer:
Verified
Q2: The monopoly demand curve for a unique
Q3: A market dominated by few buyers is
Q4: Monopoly markets are not always characterized by:
A)unique
Q5: The dilemma of natural monopoly occurs when:
A)average
Q6: In the labour market, when a union
Q7: For a monopoly in equilibrium:
A)MC AC.
B)MR AC.
C)MR
Q8: The deadweight loss from monopoly problem:
A)reflects the
Q9: Under natural monopoly, the market-clearing price occurs
Q10: If Microsoft illegally tied the sale of
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