JustMeInc Is the Only Provider of High Speed Internet in Tinytown

question 95

Multiple Choice

JustMeInc. is the only provider of high speed internet in Tinytown. The firm charges their customers on an annual basis. Its cost and demand information are given below.

If the government decides to regulate this natural monopoly by forcing them to sell the quantity and price where the market demand curve crosses average cost, then the market price would be

• A) $233.33
• B) $210
• C) $180
• D) $150

Understand the response mechanisms to surplus and shortage in different economic systems.

Identify and explain the main components and benefits of the market system, including the concept of the invisible hand.

Comprehend the coordination and incentive problems in centrally planned economies and how they impact economic efficiency.

Identify the issues related to risk management in both command and market economies.

---

Definitions:

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues, often representing the additional benefit over the next best alternative.

Industry Output

The total production or supply of goods and services produced within a specified industry over a given period of time.

Economic Losses

Occur when a company's total costs exceed its total revenues, resulting in a negative profit.

Industry Output

The total production of goods and services by all firms in a specific industry over a given period.