(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.

Since you have asked multiple question, we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question. Thank you. A natural monopoly arises when there is economies of scale over a sufficiently large range of outputs so as to leave a single firm supplying the entire market. Under price cap regulations, the regulator sets the price that the firm can charge for a period of time. Cost plus regulation practice is in such a way that the regulator calculate the average cost of production and add a normal rate of profit a firm should expect to the cost amount and the set the price for consumers. Break even regulations allow monopolies to charge prices by which their total revenue equal total cost, that means the firm can produce at the point where there is no profit nor loss. Therefore price ceiling regulations on a natural monopolist is a type of price cap regulation. The correct choice is 1. Price cap regulation.

Answered: (1A) Say the government places…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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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