A tax may be used as a corrective device in the case of a negative externality because it will __________ marginal private costs and __________ supply.

For a natural monopoly, if price is set equal to marginal cost then the firm incurs an economic loss

Indicate whether the statement is true or false

Free trade ________ living standards by ________ economic efficiency

A) lowers; eliminating B) raises; equalizing C) lowers; decreasing D) raises; increasing