If a Natural Monopoly Is Forced to Use Marginal Cost

question 14

Multiple Choice

If a natural monopoly is forced to use marginal cost pricing,which of the following is not true?

• A)Average total costs increase.
• B)Output increases.
• C)Allocative efficiency is achieved.

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Definitions:

Erik Erikson

A developmental psychologist known for his theory on the psychosocial development of human beings, which outlines eight stages from infancy to adulthood.

Psychosocial Development

A theory proposed by Erik Erikson that describes how individuals' social relationships and sense of identity develop across eight stages from infancy to adulthood.

Correlational Information

Data that indicates the relationship between two variables, showing how one may predict or relate to the other without implying causation.

Longitudinal Research Method

A research design that involves repeated observations of the same variables over short or long periods of time.