If Regulators of the Local Gas and Water Utility Companies

question 170

Multiple Choice

If regulators of the local gas and water utility companies require those firms to price their service at marginal cost

• A) there would be a deadweight loss in their markets.
• B) the firms might require a tax-financed subsidy to survive.
• C) their customers would enjoy no consumer surplus.
• D) None of the above answers are correct.