Contracts are usually less costly to arrange and enforce than spot market transactions, and they bring benefits that are unobtainable in spot markets

If government regulation sets the maximum price for a natural monopoly equal to its marginal cost, then the natural monopolist will

a. earn economic losses. b. earn economic profits. c. earn zero economic profits. d. produce a lower quantity of output than is socially optimal.

Toni deposited $250 into an account and one year later she had $272.50 in the account. What interest rate was paid on Toni's deposit?

a. 8 percent b. 9 percent c. 10 percent d. None of the above is correct.