Suppose that your state is considering a law that would force all monopolies to charge the efficient price that would prevail if the market were competitive. Which of the following statements explain to your legislator why the state will have to subsidize natural monopolies if this law goes into effect? a. Marginal cost (MC) would be less than average total cost (ATC) at the new quantity level.
b. Average total cost (ATC) would be above price at the efficient quantity.
c. A natural monopolist would now earn a normal profit.
d. The efficient price will equal marginal cost (MC).
e. The efficient price will equal marginal revenue (MR).

Menu design is determined by the market, and meal period.

Which of the following differentiates cost accounting and financial accounting? a. the primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. b. cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. c. cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. d. cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.

Which of the following would be an accurate statement about achieving a balanced budget