FIGURE 12- 1 Consider Three Firms,A,B and C,all Producing Kilos

question 19

Multiple Choice

FIGURE 12- 1 Consider three firms,A,B and C,all producing kilos of potatoes (per year) in a perfectly competitive market.The diagrams below show marginal cost curves for each of the three firms.

-One method of regulating a natural monopoly is known as average- cost pricing.Using this method,the regulator requires that the price be set equal to

• A)internal cost.
• B)average fixed cost.
• C)average variable cost.
• D)marginal cost.
• E)long- run average cost.

---

Definitions:

Genitalia

The external and internal organs of reproduction and their associated structures.

Prostate Gland

A gland in the male reproductive system that produces a fluid which helps to nourish and transport sperm.

Bulbourethral Glands

Small glands located near the base of the penis, involved in secreting a fluid that lubricates and neutralizes acidity during sexual arousal.

Seminal Vesicles

are paired glands located near the male bladder that produce a significant portion of the fluid constituting semen.