Average cost regulation of a natural monopoly does not involve: ...

[waynest]

Average cost regulation of a natural monopoly does not involve:
 a. production at a socially inefficient level of output.
 b. a tendency for average total cost curves to shift upward over time.
 c. a subsidy.
 d. production at the output level at which demand intersects the average total cost curve.

Question 2

A customs union is an organization of nations whose members:
 a. have impenetrable trade barriers among themselves but impose no trade barriers on nonmembers.
  b. have no trade barriers among themselves but impose common trade barriers on nonmembers.
  c. have no trade barriers among themselves but each member country chooses its own trade policies with nonmember countries.
  d. retaliate each other by raising reciprocal tariffs and calling for fair trade.
  e. neither have trade barriers among themselves nor impose any restriction on the nonmember countries.

[FergA]

Answer to Question 1

c

Answer to Question 2

b

[waynest]

Excellent

[tkempin]

TYSM