The Natural Monopoly

question 226

Multiple Choice

The natural monopoly:

• A)would incur an economic profit if regulated to produce where price is less than marginal cost.
• B)would incur an economic profit if regulated to charge a price equal to average total cost.
• C)generates more consumer surplus than would an unregulated monopolist if regulated to produce where price equals average total cost.
• D)generates more consumer surplus than would an unregulated monopolist if regulated to produce where marginal cost equals marginal revenue.

---

Definitions:

Teres Minor

A small muscle of the rotator cuff that assists in rotating the arm laterally and stabilizing the shoulder joint.

Lateral Rotation

The outward rotation of a limb or organ away from the midline of the body.

Medial Rotation

Medial rotation is a rotational movement toward the midline of the body, typically referring to a movement of the limbs.

Extension

To stretch out.