To Allow a Public Utility (Which Is a Natural Monopoly)to

question 15

Multiple Choice

To allow a public utility (which is a natural monopoly) to earn only a normal profit, the government should

• A)do all of the following
• B)set price equal to average cost
• C)equate marginal cost and average cost
• D)set marginal cost equal to marginal revenue
• E)set price equal to marginal cost

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Definitions:

Internal Communication

The exchange of information, ideas, and feedback within an organization among its members, aimed at improving efficiency, morale, and collaboration.

Noise

Unwanted or irrelevant information that obscures or interferes with the interpretation of data.

Business Conversations

Dialogues or discussions related to the activities, concerns, or operations of a business.

Crisis Response

The strategies and actions taken by an organization or government to manage and mitigate the impact of an unexpected, negative event.