Author Question: If regulation imposes marginal cost pricing on a natural monopoly, then the monopoly will: a. ... (Read 110 times)

dbose · **on:** Jun 30, 2018

If regulation imposes marginal cost pricing on a natural monopoly, then the monopoly will:
a. suffer persistent economic losses.
b. earn a fair, but not excessive, return on its assets.
c. produce too little output to achieve efficiency.
d. experience diseconomies of scale.

Question 2

Before the 1970s, bankers were happy with interest-rate ceilings because those ceilings:
a. reduced interest-rate competition for deposits among banks.
b. guaranteed them high profits.
c. guaranteed them a minimum profit.
d. enabled them to expand into other lines of commerce.
e. allowed them to hold corporate stock.