The problem with adopting a fair-return pricing policy for a natural monopoly is that

A. economic profits will be positive.

B. economic profits will be negative.

C. it is not productively efficient.

D. it is not allocatively efficient.

Question

Angus

Social Studies

2 July, 06:44

The problem with adopting a fair-return pricing policy for a natural monopoly is that

A. economic profits will be positive.

B. economic profits will be negative.

C. it is not productively efficient.

D. it is not allocatively efficient.

+4

Answers (1)

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Scarlett Ray · Answer 1

Answer:A. economic profits will be positive.

Explanation:The problem with adopting a fair-return pricing policy for a natural monopoly is that the economy profit will be positive.

This situation allow the producer to make normal profit, the producer make an average cost of producing the item as profit

The problem with adopting a fair-return pricing policy for a natural monopoly is thatA. economic profits will be positive.B. economic profits will be negative.C. it is not productively efficient.D. it is not allocatively efficient.

The problem with adopting a fair-return pricing policy for a natural monopoly is that

A. economic profits will be positive.

B. economic profits will be negative.

C. it is not productively efficient.

D. it is not allocatively efficient.