To Allow a Natural Monopoly to Earn Only a Normal

question 132

Multiple Choice

To allow a natural monopoly to earn only a normal profit, the government should set

• A)price equal to marginal cost.
• B)price equal to average total cost.
• C)price equal to average fixed cost.
• D)average revenue equal to marginal cost.
• E)marginal revenue equal to marginal cost.

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Definitions:

Customer Invoices

Financial documents issued by a seller to a buyer, detailing the sale transaction and requesting payment.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Electronic Invoice Form

A digital version of a billing document sent by a supplier to a customer, detailing products or services sold and requesting payment.

QuickBooks

An accounting software package developed and marketed by Intuit, aimed at small and medium-sized businesses for managing invoices, expenses, and payroll.