Question

The problem with adopting a fair-return pricing policy for a natural monopoly is that Multiple Choice economic profits will be positive. economic profits will be negative. it is not productively efficient. it is not allocatively efficient.

Answer 1

Answer:

it is not allocatively efficient

Explanation:

Monopoly is a market condition where one seller has all the market share. This leads to an inefficient market structure, an increase in the prices of goods and services and abnormal profits. A problem with adopting a fair return polity for a natural monopoly is that it is not allocatively efficient. In a monopoly, goods and services are not produced to help the economy or people.