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The problem with adopting a fair-return pricing policy for a natural monopoly is that

A. economic profits will be positive.
B. economic profits will be negative.
C. it is not productively efficient.
D. it is not allocatively efficient.

Respuesta :

davrule239

Answer:A.economic profits will be positive.

Explanation:The problem with adopting a fair-return pricing policy for a natural monopoly is that the economy profit will be positive.

This situation allow the producer to make normal profit,the producer make an average cost of producing the item as profit

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