Question : 101) Refer to Figure 12-6. Suppose this firm being regulated : 1384268

 

101) Refer to Figure 12-6. Suppose this firm is being regulated using a policy of marginal-cost pricing. In this case,

A) allocative efficiency is achieved because profits are maximized.

B) the result is allocatively inefficient because the firm is suffering losses.

C) the result is allocatively inefficient because the firm is earning profits.

D) the result is allocatively inefficient because the marginal cost curve lies below the ATC curve.

E) allocative efficiency is achieved because price equals marginal cost.

102) Refer to Figure 12-6. Suppose this firm is being regulated using a policy of marginal-cost pricing. To maintain the resulting level of output

A) the government would have to subsidize the firm or it will eventually shut down.

B) the regulator would have to allow the firm to keep the monopoly profits at this level of output.

C) the government would have to accept the allocative inefficiency associated with this level of output.

D) the average total cost curve would have to shift up.

E) the demand curve would have to the left.

103) Refer to Figure 12-6.  Suppose this firm is a government-owned natural monopoly and imposes a price so as to achieve allocative efficiency in this market.  The amount of tax revenue that the government must raise elsewhere in the economy to offset the losses of this firm is represented by the area

A) ae

B) bc

C) edbc

D) db

E) 0b

104) Refer to Figure 12-7.  If this firm were unregulated and profit maximizing, its profit would be ________ per day.

A) $0

B) $10 000

C) $60 000

D) $110 000

E) $120 000

105) Refer to Figure 12-7.  Suppose this firm is being regulated using a policy of average-cost pricing.  The resulting price and output would be ________ per kwh and ________ kwh per day.

A) $0.06; 1 million

B) $0.07; 1.5 million

C) $0.09; 1.4 million

D) $0.11; 1 million

E) $0.12; 1 million

106) Refer to Figure 12-7.  Suppose this firm is being regulated using a pricing policy of average-cost pricing.  In this case, economic profits are equal to

A) $10 000.

B) $6000.

C) $126 000.

D) $28 000.

E) $0.

107) Refer to Figure 12-7.  Suppose this firm is being regulated using a policy of marginal-cost pricing.  The resulting price and output would be ________ per kwh and ________ kwh per day.

A) $0.06; 1 million

B) $0.07; 1.5 million

C) $0.08; 1.5 million

D) $0.09; 1.4 million

E) $0.12; 1 million

108) Refer to Figure 12-7.  Suppose this firm is being regulated using a policy of marginal-cost pricing.  In this case, economic profits are equal to

A) -$15 000.

B) -$28 000.

C) $0.

D) $90 000.

E) -$50 000.

109) There has been a trend toward less government regulation and ownership in oligopolistic industries in most industrialized countries since the 1980s.  One reason for this is

A) policymakers came to understand that many oligopolistic firms were operating at their minimum efficient scale, thereby producing an efficient outcome.

B) policymakers came to understand that many oligopolistic firms were producing output levels that resulted in allocative efficiency.

C) policymakers realized that they did not have effective tools for promoting efficiency.

D) Canada’s Competition Bureau, and similar agencies in other countries were so successful at promoting competition that such regulation is no longer required.

E) domestic firms are now exposed to more international competition due to falling transportation and communication costs.

110) In many cases throughout Canadian history, governments have sought to control the behaviour of oligopolistic firms through either ownership or regulation.  Policymakers are now skeptical of such practices because

1) many innovations in products and production methods that have led to increases in living standards are attributable to firms in oligopolistic industries;

2) it became clear that oligopolistic industries can achieve both productive and allocative efficiency without government intervention;

3) the regulatory body often ends up protecting the firms from competition.

A) 1 only

B) 2 only

C) 3 only

D) 1 and 2

E) 1 and 3

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more