If a marginal cost pricing rule is imposed on the natural monopoly shown in the figure above, then it will produce

The process of countries becoming more open to foreign trade and investment is known as outsourcing

Indicate whether the statement is true or false

The major criticism of the view that expectations are formed adaptively is that

A) this view ignores that people use more information than just past data to form their expectations. B) it is easier to model adaptive expectations than it is to model rational expectations. C) adaptive expectations models have no predictive power. D) people are irrational and therefore never learn from past mistakes.