Marginal cost regulation of a natural monopoly:
a. generates economic losses for the seller.
b. necessitates a subsidy payment to the firm.
c. imposes a price that is less than average total cost.
d. is characterized by all of the above.
Question 2
After the U.S. government had approved the feeding of hormones to U.S. beef cattle, several western European nations restricted the import of beef from the U.S. Which of the following tools of commercial policy had been put to use in this situation?
a. Tariff
b. Quota
c. Health and safety standards
d. Subsidy
e. Government procurement
