A natural monopoly regulated with an average cost pricing rule is ...

[c0205847]

A natural monopoly regulated with an average cost pricing rule is ________.
 
  A) efficient and incurs an economic loss
  B) inefficient and makes zero economic profit
  C) inefficient and makes an economic profit
  D) efficient and makes zero economic profit

Question 2

Health care costs rose more than 10 percent in 2011, according to a survey of insurers by Aon Consulting Worldwide. If the increase in costs solely comes from increased prices for MRI and X-ray machines, then for the health care industry
 
  A) fixed costs are increasing.
  B) long run average total cost is decreasing.
  C) productivity is increasing.
  D) variable costs are increasing.

[steff9894]

Answer to Question 1

B

Answer to Question 2

A