When investment occurs in developing nations
A) investors hope to gain significant returns on their investment and residents gain higher rates of economic growth.
B) higher rates of economic growth are usually not achieved.
C) significant levels of pollution usually occur.
D) government politicians usually benefit from the illegal payments made to secure the investment.
Question 2
Regulators employ average cost pricing instead of marginal cost pricing because
A) average cost pricing is more efficient than marginal cost pricing.
B) price must be high enough to cover all opportunity costs if the firm is to stay in business.
C) the price is lower with average cost pricing.
D) average cost pricing is simpler to compute than marginal cost pricing.
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