The figure above provides information about Light-U-Up Utilities, ...

[ssal]

The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. What is the area of deadweight loss when Light-U-Up is regulated and follows an average cost pricing rule?
 
  A) acg
  B) degf
  C) deg
  D) There is no deadweight loss.

Question 2

Explain Ricardo's theory of comparative advantage.
 
  What will be an ideal response?

[princessflame2016]

Answer to Question 1

C

Answer to Question 2

Specialization and free trade will benefit all trading partners, including those that may be absolutely more efficient producers.

[ssal]

Great answer, keep it coming

[Liddy]

Thanks for the timely response, appreciate it