If the regulator wants to avoid any deadweight loss in a natural monopoly market, the regulator has the firm set its price equal to its

If insurance companies are able to gather more and better information on their customers, this will

A) help reduce the problem of adverse selection but do nothing to help with the problem of moral hazard. B) help reduce the problem of moral hazard but do nothing to help with the problem of adverse selection. C) help reduce the problems of adverse selection and moral hazard. D) do nothing to help with the problems of moral hazard and adverse selection.

One reason why property rights help achieve an efficient level of pollution is because property rights

A) force the marginal private cost to equal the marginal social cost. B) force the marginal social cost to zero. C) force the marginal external cost to a lower level than marginal private cost. D) eliminate marginal private costs. E) change the marginal external cost so that they are equal to the marginal social benefit.