The problem with adopting a fair-return pricing policy for a natural monopoly is that Multiple Choice economic profits will be positive. economic profits will be negative. it is not productively efficient. it is not allocatively efficient.

it is not allocatively efficient

Explanation:

Monopoly is a market condition where one seller has all the market share. This leads to an inefficient market structure, an increase in the prices of goods and services and abnormal profits. A problem with adopting a fair return polity for a natural monopoly is that it is not allocatively efficient. In a monopoly, goods and services are not produced to help the economy or people.

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best of luck,

the divergent