One type of regulatory practice common for public utilities is setting a price for consumers based on the average cost of production plus the normal rate of profit expected; this is known as what kind of regulation?

Which of the following is true? a. The private market provides too much of goods that generate external benefits

b. In the case of external benefits, if we could add the benefits that are derived by non-paying consumers, the supply curve would shift to the right, increasing output. c. In the case of external benefits, a tax equal to external benefits would result in an efficient level of output. d. In the case of public goods, when people act as free-riders, some goods having benefits greater than costs will not be produced.

Which of the following happens when a nation's net gains from trade are positive? a. Supporting industries of the traded good are created

b. Supporting industries of the traded good earn lower profits. c. All workers in the trading nation earn lower wages. d. The total surplus enjoyed by the trading nation decreases