Answer to Question #183406 in Microeconomics for james

Question

QUESTION 5

Determining this level of output and price with the political pressures, time constraints, and limited information in the real world is:

1. A job for a superhero.
2. Impossible.
3. Much harder than identifying the point on a graph.
4. Much easier than identifying the point on a graph.
5. Suboptimal.  

QUESTION 6

Firms under cost-plus regulation have an incentive to generate:

1. Larger levels of output.
2. Lower costs.
3. Higher costs by investing in research and development.
4. Higher costs by building huge factories or employing many staff.
5. Electricity from a carpenter’s shop.

QUESTION 7

This can provide the natural monopoly with incentives for efficiency and innovation:

1. Higher costs.
2. Higher prices.
3. The possibility of earning greater profits or experiencing losses.
4. The market.
5. All of the above.

Answer 1

QUESTION 5:

1. A job for a superhero.

QUESTION 6:

4.Higher costs by building huge factories or employing many staff.

QUESTION 7:

3.The possibility of earning greater profits or experiencing losses.