What Is the Drawback of Forcing a Natural Monopolist to Use

question 125

Multiple Choice

What is the drawback of forcing a natural monopolist to use a marginal cost pricing rule?

• A) No deadweight loss is eliminated.
• B) The firm will incur an economic loss.
• C) The gain in consumer surplus will be less than the loss in producer surplus, thus creating additional deadweight loss.
• D) None of the above answers is correct.

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Definitions:

Zeitstörers

External or environmental factors that disrupt the natural circadian rhythms or biological clocks of an organism.

Interpersonal Social Rhythm Therapy

A type of psychotherapy that combines interpersonal psychotherapy techniques with behavioral techniques to help manage the biological rhythms of individuals with bipolar disorder.

Prodrome

An early set of signs or symptoms indicating the onset of a disease before more diagnostically specific symptoms occur.

Manic

Pertaining to or suffering from mania, a mental condition characterized by periods of great excitement, euphoria, delusions, and overactivity.