Regulating an Industry to Remove All Economic Profit

question 44

Multiple Choice

Regulating an industry to remove all economic profit

• A)removes all incentive for efficiency and responsiveness to consumer demand.
• B)removes distortions caused by cross subsidies.
• C)removes allocative inefficiency.
• D)increases incentives to be productively efficient.

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Definitions:

Camel

A large desert-dwelling mammal known for its ability to store water in its humps, making it highly adapted to arid environments.

Prosopagnosia

A neurological disorder characterized by the inability to recognize faces, also known as face blindness.

Inability

The lack of capacity, means, or competence to perform an action or fulfill a requirement.

Visually Distinguish

The ability to differentiate objects, shapes, or patterns through sight.