Which of the Following Is a Problem That Arises When

question 188

Multiple Choice

Which of the following is a problem that arises when regulations force "natural monopolies," like electric utilities, to charge a price that is equal to their marginal cost (MC) ?

• A) This price will force the firms out of business in the long run.
• B) The firms have an incentive to pad their fixed costs.
• C) When price is equal to MC, new firms will enter the industry and drive up the costs of production.
• D) Both b and c are correct.

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Definitions:

Infraspinatus

A muscle located on the back of the shoulder blade that helps in lateral rotation of the shoulder joint and stabilization of the humerus.

Rhomboideus Group

A collection of muscles in the back that connect the spinal column to the shoulder blades, aiding in the movement and stabilization of the scapula.

Deltoid Group

A muscle group responsible for lifting the arm and giving the shoulder its range of motion.

Trapezius Group

A major muscle group in the back that extends from the neck to the middle of the spine and out to the shoulder, involved in moving, rotating, and stabilizing the scapula.