The government intervenes in monopoly and oligopoly in all of the following ways except _________________.

increasing the number of natural monopolies
public ownership
anti-combine law
regulation

The _______ the number of people who share the surplus created by the regulation, the _______ is the demand for regulation, and the _______ the surplus per person generated, the _______ is the supply of regulation.

larger; smaller; smaller; larger
smaller; larger; larger; larger
smaller; smaller; smaller; smaller
larger; larger; smaller; smaller

Each year, a group of people spends $10 million lobbying for a change in existing regulations, but no politician plans to support alternative regulations. There _____________.

will be a political equilibrium when the lobby group stops spending
is a political equilibrium
will be a political equilibrium when the politicians change the regulations
will never be an equilibrium

According to public interest theory, when a monopoly exists politicians will introduce regulations that will ______________.

decrease prices and keep the level of output constant
increase output and decrease prices to their competitive levels
decrease prices and marginally increase the level of output
increase prices and increase the level of output

The political equilibrium always achieves __________________.

efficiency
either efficiency or the maximization of producer surplus
the maximization of producer surplus
either efficiency or the maximization of deadweight loss

When a marginal cost pricing rule is imposed on a natural monopoly, ___________________.

the monopoly makes an economic profit
total surplus is maximized and the monopoly incurs an economic loss
the monopoly makes a normal profit
total surplus is maximized and the monopoly makes an economic profit

If a natural monopoly succeeds at capturing the regulator, then the monopoly will produce the quantity at which __________________.

marginal cost equals price
marginal revenue equals marginal cost
average total cost equals price
marginal revenue equals price

_________ would exist if oil producers decided to restrict output so that they could make a larger profit.

An oligopoly
A cartel
A monopoly
Monopolistic competition

The economic theory of bureaucracy assumes that the manager of a Crown corporation seeks to _______________.

produce the allocatively efficient amount
maximize the budget of the corporation
decrease average total costs
produce at the point where marginal revenue equals marginal cost

_______ is an alternative to regulation as a means of regulating markets.

Anti-combine law
The imposition of prices
The threat of incarceration
Negative publicity

Please enter your name and press the SEND button