Compared to the profit-maximizing outcome, marginal cost pricing in natural monopoly leads to

A firm in perfect competition perceives the demand curve to be downward sloping

Indicate whether the statement is true or false

Which of the following is a normative economic statement?

a. If we doubled the size of welfare payments, we would reduce the number of homeless persons. b. Companies should be concerned with more than just their profits. c. An increase in spending on airport security will reduce the number of hijackings. d. If social security were to be privatized, workers would earn a higher rate of return on their retirement contributions.