At a level of output when regulators require a natural monopoly ...

[burchfield96]

At a level of output when regulators require a natural monopoly to set a price that is equal to marginal cost, the firm
 
  A) makes zero economic profit.
  B) makes an economic profit.
  C) incurs an economic loss.
  D) makes a normal-economic profit.
  E) makes either zero economic profit or an economic profit, depending on whether the firm's average total cost equals or is less than its marginal cost.

Question 2

Which of the following is TRUE?
 
  A) For an inferior good, when income increases, the demand curve shifts leftward.
  B) The demand curve for a good shifts leftward when the price of a substitute rises.
  C) If consumers expect the price of a good will rise in the future, the demand curve shifts leftward.
  D) An increase in population shifts the demand curve for most goods leftward.

[sarah_brady415]

Answer to Question 1

C

Answer to Question 2

A

[burchfield96]

Excellent

[FergA]

YES! Correct, THANKS for helping me on my review