The Economic Efficiency of a Natural Monopoly Can Be Improved

question 79

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

---

Definitions:

Duals

A term often used in automotive contexts to refer to dual sets of tires, exhaust pipes, or other paired components for improved performance or capacity.

GVW

Gross Vehicle Weight, the maximum operating weight/mass of a vehicle as specified by the manufacturer, including the vehicle's chassis, body, engine, engine fluids, fuel, accessories, driver, passengers, and cargo.

Computer-Controlled

Refers to devices or systems that are operated or regulated by computer software.

Hydromechanically Managed

describes systems or mechanisms that are controlled or regulated through a combination of hydraulic and mechanical means, often for precision and efficiency.