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Author Question: The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that ... (Read 69 times)

ssal

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on: Jun 29, 2018
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?


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princessflame2016

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Reply #1 on: Jun 29, 2018
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

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Reply 2 on: Jun 29, 2018
Wow, this really help

Zebsrer

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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