Which of the Following Is an Efficient Regulatory Mechanism for a Monopolistic

question 4

Multiple Choice

Which of the following is an efficient regulatory mechanism for a monopolistic industry?

• A)a regulatory mechanism which makes MR coincide with market demand
• B)rate of return regulation
• C)distributing supranormal profits to consumers
• D)average- cost pricing

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Definitions:

Undue Influence

The use of excessive pressure by the dominant member of a confidential relationship to convince the weaker party to enter a contract that greatly benefits the dominant party.

Durable Power of Attorney

A legal document that grants a trusted person the authority to act on behalf of another person in legal or financial matters, continuing or taking effect in the event of incapacity.

Incapacitating Illness

A severe health condition that significantly impairs a person's ability to perform ordinary daily activities.

Legal Rights of Inheritance

The statutory or customary rights governing the transfer of property or titles upon the death of the owner to the legal heirs.