(1A) Say the government places regulation on a natural monopolist so that for its product it can only set its price so high, e.g. a price ceiling. What is this type of regulation called?Price-cap regulationCost-plus regulationBreakeven regulation (1B) Which of the following describes the typical shape of the monopolist's total cost curve?(a) Total costs decrease and become flatter as output rises.(b) Total costs are typically constant and are shown by a straight horizontal line.(c) Total costs rise and grow steeper as output rises.(1C) Which of the following statements is true about price discrimination In the United States.(a)Price discrimination is permitted.(b)Price discrimination is illegal.(c)Price discrimination is supported.(1D) In the economy, allocative efficiency takes place(a)when goods and services production is at their lowest costs.(b)when the mix of goods and services is at its ideal or optimal.(c) when deadweight loss of goods and services in an economy occurs with flawed distribution.

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Answered: (1A) Say the government places…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 12PA

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(1A) Say the government places regulation on a natural monopolist so that for its product it can only set its price so high, e.g. a price ceiling. What is this type of regulation called?

Price-cap regulation
Cost-plus regulation
Breakeven regulation

(1B) Which of the following describes the typical shape of the monopolist's total cost curve?

(a) Total costs decrease and become flatter as output rises.
(b) Total costs are typically constant and are shown by a straight horizontal line.
(c) Total costs rise and grow steeper as output rises.

(1C) Which of the following statements is true about price discrimination In the United States.

(a)Price discrimination is permitted.
(b)Price discrimination is illegal.
(c)Price discrimination is supported.

(1D) In the economy, allocative efficiency takes place

(a)when goods and services production is at their lowest costs.
(b)when the mix of goods and services is at its ideal or optimal.
(c) when deadweight loss of goods and services in an economy occurs with flawed distribution.

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