Exhibit 25-1 ​

question 52

Multiple Choice

Exhibit 25-1
​

-Refer to Exhibit 25- 1. If average-cost pricing is imposed on the natural monopoly firm, what price is charged?

• A)P₁
• B)P₂
• C)P₃
• D)any of the three prices

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Definitions:

Variance

A statistical measure that represents the dispersion of a dataset relative to its mean, indicating the spread of the data points.

Expected Return

Expected return is the forecasted financial return on an investment, reflecting the amount of profit or loss one anticipates on an investment.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used to quantify the risk of an investment.

Expected Return

The weighted average of all possible returns from an investment, considering the probabilities of each outcome.