This topic contains a solution. Click here to go to the answer

Author Question: When regulating a natural monopoly, average cost pricing is usually used rather than marginal cost ... (Read 98 times)

sam.t96

  • Hero Member
  • *****
  • Posts: 570
When regulating a natural monopoly, average cost pricing is usually used rather than marginal cost pricing because
 
  A) average cost pricing allows the firm to earn a normal rate of return on investment, while marginal cost pricing leads to economic losses.
  B) average cost pricing is more economically efficient than marginal cost pricing.
  C) average cost pricing leads to lower profits than marginal cost pricing.
  D) average cost pricing leads to a lower market price than marginal cost pricing.

Question 2

The adverse selection problem in international investment means
 
  A) that those seeking funds for the riskiest projects are those most actively seeking the funds.
  B) that the recipients of the funds may use the funds for other than the approved projects.
  C) that government officials may demand higher than the usual amount of bribes.
  D) those in the highest levels of government are the most dishonest.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

14vl19

  • Sr. Member
  • ****
  • Posts: 310
Answer to Question 1

A

Answer to Question 2

A





 

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

For a complete list of videos, visit our video library