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

question 55

Multiple Choice

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

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

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Definitions:

Defamation

The act of damaging someone's reputation by making false and harmful statements.

Falsity

Relates to the quality or state of being false or untrue.

Conversion

Any distinct act of dominion wrongfully exerted over another’s personal property in denial of or inconsistent with his rights therein. That tort committed by a person who deals with chattels not belonging to him in a manner that is inconsistent with the ownership of the lawful owner.

Defendant

An individual, company, or institution being sued or accused in a court of law.