Under marginal cost pricing by a natural monopoly, a. price is ...

[lak]

Under marginal cost pricing by a natural monopoly,
 a. price is less than average cost.
 b. there will be a welfare cost.
 c. the producer will earn a higher than normal rate of return.
 d. there is little or no incentive for the producer to hold down costs.

Question 2

In a free trade area, member nations have no trade barriers among themselves, but are free to set their own trade policies toward nonmembers.
 a. True
  b. False
  Indicate whether the statement is true or false

[skipfourms123]

Answer to Question 1

a

Answer to Question 2

True