The Figure Below Shows Revenue and Cost Curves of a Natural

question 78

Multiple Choice

The figure below shows revenue and cost curves of a natural monopoly firm.Figure 14.1
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In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-Which of the following is an example of the opportunity cost involved with social regulation?

• A)The monetary costs of hiring administrative assistants to fill out OSHA safety reports
• B)The environmental costs of pollution control required under the Clean Air Act
• C)The monetary costs of laboratory trials required to try out a new drug
• D)The lives that are lost because new drugs are not introduced quickly
• E)The monetary cost of manufacturing a life saving drug

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Definitions:

Influenza

A highly contagious viral infection that affects the respiratory system, commonly known as the flu.

Allergy

An immune system response to a foreign substance (allergen) that is not typically harmful to the body, which can cause various symptoms.

Chronic Obstructive Pulmonary Disease

A group of lung conditions that cause breathing difficulties, including emphysema and chronic bronchitis.

Poor Appetite

Reduced desire to eat, which can be a symptom of various medical conditions or may occur as a side effect of certain treatments.