The Economic Efficiency of a Natural Monopoly Can Be Improved

question 97

Multiple Choice

The economic efficiency of a natural monopoly can be improved with the use of two-part tariffs because it allows the monopoly to

• A)charge users according to their willingness to pay.
• B)charge residential users different rates than business users.
• C)charge users according to their ability to pay.
• D)charge users separately for fixed and variable costs.
• E)lower its total costs.

---

Definitions:

General Note

Information provided on a drawing that applies globally to the entire document, offering guidance or specifying requirements that are not tied to any single element.

Individual Symbols

Unique graphical representations or icons used on technical drawings to convey specific information or instructions.

CSA

Canadian Standards Association, an organization that develops standards in various industries, including electrical, mechanical, and energy management.

Canadian Standards Association

A not-for-profit organization that develops standards for a wide range of products and processes in Canada.