The Type of Regulatory Pricing (Of a Natural Monopoly Firm)

question 113

Multiple Choice

The type of regulatory pricing (of a natural monopoly firm) that is consistent with resource-allocative efficiency is __________ cost pricing.

• A)average
• B)sunk
• C)marginal
• D)fixed
• E)none of the above

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Definitions:

Stock Dividends

A form of dividend payment made by a corporation to its shareholders in the form of additional shares, rather than cash, based on the portion of shares already held.

Unlimited Liability

A legal structure in which business owners are personally responsible for all the debts of the business.

Corporate Form

A type of business structure where the entity is legally separate from its owners, providing limited liability protection to its shareholders.

Legal Entity

An organization with legal rights and obligations, such as a corporation, partnership, or sole proprietorship.