If regulation imposes marginal cost pricing on a natural ...

[dbose]

If regulation imposes marginal cost pricing on a natural monopoly, then the monopoly will:
 a. suffer persistent economic losses.
  b. earn a fair, but not excessive, return on its assets.
  c. produce too little output to achieve efficiency.
  d. experience diseconomies of scale.

Question 2

Before the 1970s, bankers were happy with interest-rate ceilings because those ceilings:
 a. reduced interest-rate competition for deposits among banks.
  b. guaranteed them high profits.
 c. guaranteed them a minimum profit.
 d. enabled them to expand into other lines of commerce.
 e. allowed them to hold corporate stock.

[Andromeda18]

Answer to Question 1

a

Answer to Question 2

a

[dbose]

Excellent

[FergA]

TYSM