It is important when regulating a market with a natural monopoly to maintain on going business incentives for the firm involved. a cost-plus approach to regulating a market does not provide this. what would a benefit to not utilizing a cost plus approach to regulation be? select the correct answer below: the natural monopoly will have an average rate of profit locked in every year. the natural monopoly will be able to decline its price slightly over time. the natural monopoly will be reimbursed for their costs. the natural monopoly will have incentives for efficiency and innovation.

Atlas manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. currently atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. what is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? a. total manufacturing costs will increase and unit manufacturing costs will also increase. b. total manufacturing costs will stay the same and unit manufacturing costs will stay the same. c. total manufacturing costs will increase and unit manufacturing costs will decrease. d. total manufacturing costs will increase and unit manufacturing costs will stay the same.

How do communism and socialism differ in terms of the role that government plays in the economy ?

When a shortage or a surplus arises in the loanable funds market a. the supply of loanable funds changes to return the economy to its original real interest rate b. the nominal interest rate is pulled to the new equilibrium level c. the demand for loanable funds changes to return the economy to its original real interest rate d. the real interest rate is pulled to the new equilibrium level