If an industry is a natural monopoly and regulators decide that ...

[MirandaLo]

If an industry is a natural monopoly and regulators decide that the firm must price at marginal cost, then consumers will be ________ off than if the firm was unregulated and the firm's owners will be ________ off than if it was unregulated.
 
  A) better; better
  B) better; worse
  C) worse; better
  D) worse; worse

Question 2

The inefficiency created by income taxation occurs due to
 
  A) the cost of collecting taxes and making welfare payments.
  B) motivating welfare recipients to work less.
  C) motivating income earners to work less.
  D) All of the above answers are correct.

[at]

Answer to Question 1

B

Answer to Question 2

D