The United States relies heavily on markets and so cannot be characterized as a mixed economy.

Which of the following statements regarding an average-cost pricing rule for a natural monopoly is WRONG?

A) It sets price equal to average total cost. B) It is efficient. C) The firm makes zero economic profit. D) More output is produced than if the firm maximized profit.

Domestic firms operating abroad may find it economically beneficial to adopt environment-friendly standards because

A) foreign nations may be upset if firms do not use the environment-friendly technology. B) the least-cost strategy usually involves the adoption of one set of environment-friendly technology rather than multiple standards. C) they may be forced to replace the old technology whenever the foreign country experiences positive economic development. D) their environment-unfriendly technology may be replaced by foreign-based technology. E) Only C and D are correct.