Under a marginal cost pricing rule, a regulated natural monopoly ...

[rlane42]

Under a marginal cost pricing rule, a regulated natural monopoly
 
  A) makes a positive economic profit and there is a deadweight loss.
  B) makes zero economic profit and there is no deadweight loss.
  C) incurs an economic loss and there is a deadweight loss.
  D) incurs an economic loss and there is no deadweight loss.

Question 2

In the long run, firms in monopolistic competition have excess capacity.
 
  Indicate whether the statement is true or false

[wtf444]

Answer to Question 1

D

Answer to Question 2

TRUE