The Figure Below Shows Revenue and Cost Curves of a Natural

question 10

Multiple Choice

The figure below shows revenue and cost curves of a natural monopoly firm.Figure 14.1
​
In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-If social regulation causes the supply curve in a market to shift up because of higher marginal costs, then:

• A)both consumer and producer surplus will decrease.
• B)both producer and consumer surplus will increase.
• C)consumers will gain at the expense of producers.
• D)producers will gain at the expense of consumers.
• E)there will be no change in the sum of producer and consumer surplus, although its division may change.

---

Definitions:

Expectancy Theory

A motivational theory that suggests an individual's motivation is related to their expectation of achieving desirable outcomes as a result of their efforts and the value they place on those outcomes.

Employee Motivation

The intensity of zeal, loyalty, and originality that workers in a company demonstrate in their positions.

Four-Drive Theory

A motivational theory that identifies four basic drives that affect human behavior: the drive to acquire, bond, comprehend, and defend.

Proactive Drives

Proactive drives refer to the internal motivations that prompt individuals to take anticipatory actions in the face of potential opportunities or challenges.