Which of the Following Statements Regarding a Marginal-Cost Pricing Rule

question 185

Multiple Choice

Which of the following statements regarding a marginal-cost pricing rule for a natural monopoly is WRONG?

• A) It maximizes total surplus in a regulated industry.
• B) The firm produces the efficient quantity.
• C) The firm's price equals its marginal cost.
• D) The firm earns an economic profit.

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Definitions:

Ordered Data Set

A collection of objects or values arranged in a sequence following a specific order, usually numerical or alphabetical.

Observations

Individual data points or measurements collected during a study or experiment.

Histogram

A graphical representation of the distribution of numerical data, showing the frequency of data points within successive intervals.

Proportion

The ratio of a part to the whole, often expressed as a fraction, decimal, or percentage.