Economic efficiency is indicated by

All of the following will cause the supply curve of good A to shift rightward EXCEPT

A) a reduction in the prices of inputs used to produce good A. B) an increase in the number of firms in the industry producing good A. C) a decrease in the per-unit tax on good A which producers must pay. D) an increase in the market price of good A.

If a regulatory commission sets the regulated price equal to marginal cost for a natural monopoly:

a. losses will result. b. government subsidies will be unnecessary. c. the firm will earn economic profits. d. new firms will want to enter. e. resource use will not be optimal.