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:

Facial-Feedback Hypothesis

The idea that sensory feedback from our facial expressions can affect our mood and emotions, suggesting that smiling can make us feel happier.

Positive Feelings

encompass emotions and sentiments that are uplifting, joyous, or gratifying, contributing to an overall sense of well-being.

Facial Expressions

Visual cues expressed by the muscles in the face conveying emotions, social information, or reactions to stimuli.

Paul Ekman

A psychologist who is best known for his work on the facial expressions of emotion and their relation to our feelings.