Regulated Monopolies That Face Rising Long- Run Costs and Which

question 59

Multiple Choice

Regulated monopolies that face rising long- run costs and which are forced to price their output at average cost will provide

• A) less output than what is socially optimal.
• B) the socially optimal amount of output.
• C) more output than what is socially optimal.
• D) more output than what can be absorbed by the market.
• E) so little output that there will be a shortage.