If Average- Cost Pricing Is Imposed on a Falling- Cost

question 8

Multiple Choice

If average- cost pricing is imposed on a falling- cost natural monopoly,the result will be

• A)losses and exit from the industry in the long run.
• B)economic losses.
• C)exit from the industry in the short run.
• D)zero economic profit.
• E)economic profits.

---

Definitions:

Effect Size

A quantitative measure of the strength of a phenomenon or the magnitude of difference between groups in a study.

Cohen's Standard

A guideline used in statistics to evaluate the size of an effect or difference, indicating the practical significance of research findings.

Meta-analysis

A statistical technique for summarizing the results of multiple studies on a specific topic to derive conclusions about that topic's body of research.

Statistical Method

A mathematical science used for data analysis, interpretation, explanation, and presentation.