In the Long Run,the Imposition of Average- Cost Pricing in Natural

question 94

Multiple Choice

In the long run,the imposition of average- cost pricing in natural monopolies,such as Manitoba Hydro and New Brunswick Power,would generally lead to

• A)productive efficiency.
• B)distorted investment decisions.
• C)allocative efficiency.
• D)a reduction in the output by these firms.
• E)both allocative efficiency and productive efficiency.

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Definitions:

Need For Inclusion

The inherent desire or drive within individuals to belong, be accepted, and feel a part of a group or community.

Social Anxiety

A form of anxiety that occurs in social situations, characterized by a fear of being negatively judged or evaluated by others.

Attachment Theory

A psychological theory that explores the importance of "attachment" in human development, particularly the bonds between children and their caregivers.

FIRO Model

A psychological theory that explains human behavior and interaction based on the three fundamental needs of Inclusion, Control, and Affection.