In a natural monopoly situation A) there are large economies ...

[stevenposner]

In a natural monopoly situation
 
  A) there are large economies of scale relative to demand.
  B) the firm has an upward sloping average cost curve.
  C) producers try to differentiate their product with advertising.
  D) there is no need for government regulation.

Question 2

The legal system provided by the government is necessary for the smooth working of markets because
 
  A) it keeps criminals off of the streets.
  B) it defines and protects property rights.
  C) it is set up in the U.S. constitution.
  D) it ensures that producers maximize their profits.

[Shshxj]

Answer to Question 1

A

Answer to Question 2

B

[stevenposner]

Thanks for the timely response, appreciate it

[robbielu01]

Wow, this really help