There Is a Deadweight Loss If a Natural Monopoly Is

question 148

Multiple Choice

There is a deadweight loss if a natural monopoly is regulated to use

• A) marginal cost pricing and if it is regulated to use average cost pricing.
• B) average cost pricing and if it is allowed to be unregulated and maximize its profit.
• C) marginal cost pricing and if it is allowed to be unregulated and maximize its profit.
• D) None of the above answers is correct.

---

Definitions:

Kaizen

A focus on continuous improvement.

Continuous Improvement

A continuous endeavor to enhance products, services, or processes through both small and significant advancements.

TQM Tools

A set of methodologies and practices aimed at improving the quality of products and processes within an organization, part of Total Quality Management.

Line Employees

Workers directly involved in the production or delivery of products and services, as opposed to those in management or administrative roles.